BitMEX Research found 150 crypto exchange-traded products (ETPs) with $50.3 billion in assets. The largest product tracking key cryptocurrencies like Bitcoin and Ethereum is Grayscale’s Bitcoin Trust, which is attempting to become a spot ETF.
The approval of a U.S. spot Bitcoin ETF could revolutionize this market. The first of these could be approved by the SEC on January 10, expanding the crypto ETF market. Industry experts anticipate that spot Bitcoin ETFs in the U.S. could double crypto ETP capital flows and market size.
Bitwise, a crypto investment fund, expects spot Bitcoin ETFs to be the most successful ETFs ever. They expect these ETFs to have $72 billion in assets under management in five years, well exceeding the market value. According to Van Eck, a worldwide fund manager, $2.4 billion may flow into spot Bitcoin instruments in the first quarter of 2024.
Canada, Australia, and Germany currently provide spot Bitcoin ETFs to investors. The U.S. has yet to join this list, but its entrance might be a milestone for crypto investment products worldwide.
Recent trends show institutional interest in crypto investment products. ETFGI said on December 21 that worldwide crypto ETFs had net inflows of $1.6 billion year-to-date, with $1.31 billion in November alone. This is nearly quadruple 2022’s $750 million net inflows.
The top 20 ETFs attracted $1.3 billion in 2023, the most of the 150 crypto funds. The ProShares Bitcoin Strategy ETF (BITO), which debuted in October 2021 during a crypto bull run, attracted the greatest individual inflows, raising $278.7 million in 2023.
The crypto ETP industry is growing and diversifying, and spot Bitcoin ETFs from the U.S. could accelerate this growth. This trend indicates institutional interest in cryptocurrencies and their greater adoption into mainstream investing portfolios.
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