United States-approved spot Bitcoin exchange-traded funds (ETFs) are poised to make a seismic impact on the crypto-related ETF market, potentially eclipsing its current valuation of $50.3 billion in assets under management, as per recent findings from BitMEX research.
As the anticipation for SEC approval of spot Bitcoin ETFs builds, a comprehensive list of existing crypto-related exchange-traded products has been compiled.
This list encompasses both spot and futures funds, predominantly tracking the performance of Bitcoin and Ethereum.
Leading the pack is Grayscale’s Bitcoin Trust, which is actively pursuing conversion into a spot ETF.
Market experts are optimistic about the prospects of a spot Bitcoin ETF, with expectations that its approval, possibly as early as January 10th, could effectively double the capital invested in crypto ETPs.
Bitwise, a crypto investment fund, projects that spot Bitcoin ETFs have the potential to amass a staggering $72 billion in assets under management within the next five years, surpassing the current market size.
However, global fund manager Van Eck offers a more conservative estimate, predicting around $2.4 billion in inflows into spot Bitcoin products during the first quarter of 2024.
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Despite never gaining approval in the U.S., spot Bitcoin ETFs have already found a home in countries like Canada, Australia, and Germany, allowing investors to acquire shares in these ETFs.
The enthusiasm surrounding spot Bitcoin ETFs reflects a broader trend of institutional investment in crypto products over recent months.
A report from ETF research firm ETFGI, published on December 21st, disclosed that crypto ETFs worldwide had accumulated year-to-date net inflows of $1.6 billion, with a significant portion, $1.31 billion, flowing in during November alone.
This figure represents almost double the $750 million net inflows observed in crypto ETPs throughout 2022.
Out of the 150 crypto funds available, the top 20 ETFs have attracted the most substantial investments, totaling $1.3 billion throughout 2023.
Notably, the ProShares Bitcoin Strategy ETF (BITO), launched during a crypto bull market in October 2021, stands out with the largest individual inflows, securing an additional $278.7 million in 2023.
In conclusion, the imminent approval of spot Bitcoin ETFs in the United States has the potential to reshape the landscape of crypto-related ETFs, potentially dwarfing the market’s existing valuation and solidifying the growing trend of institutional interest in cryptocurrency investments.
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