Anticipated Bitcoin ETF Launches Expected to Propel US Share of Crypto ETF Trading Volume to 99.5%, Analyst Predicts

The global landscape of crypto-related exchange-traded funds (ETFs) could witness a substantial shift, potentially positioning the United States at the forefront, accounting for nearly 99.5% of the trading volume. Insights from a seasoned Bloomberg ETF analyst highlight the influential role that the impending introduction of spot Bitcoin ETFs could play in reshaping the market dynamics.

As of now, North America commands a significant share of approximately 97.7% in the collective crypto ETF trading volume, as shared by Eric Balchunas, a senior ETF analyst at Bloomberg, through an informative Twitter post on August 10th.

Balchunas speculates, “If/when spot ETFs come out in the U.S. this will likely go to like 99.5%,” pointing to the prospective dominance that spot Bitcoin ETFs could usher in if they receive regulatory approval.

The Securities and Exchange Commission (SEC) currently has an array of spot Bitcoin ETF applications awaiting review. The imminent decision, expected by August 13th for the joint ARKB fund by Ark Invest and 21Shares, has sparked anticipation, even though a delay is widely anticipated. Cathie Wood, CEO of Ark Invest, voiced during a Bloomberg interview on August 7th that the regulatory body might be considering a simultaneous approval for multiple funds.

Shaping the landscape further, Bitwise submitted an updated prospectus on August 10th to transition its BITC fund from a Bitcoin futures ETF to the “Bitwise Bitcoin and Ether Equal Weight Strategy ETF.” Following suit, Valkyrie made a similar alteration on August 5th, renaming its BTC Futures ETF (BTF) to incorporate Ethereum Futures.

Eric Balchunas succinctly captured this evolving scenario, stating, “Cannonball Run in effect,” reflecting the ongoing flurry of transformations in the ETF arena.

Remarkably, the landscape of top-performing exchange-traded funds, as highlighted by Balchunas, has been dominated by crypto and blockchain exposure. This year, the top 15 best-performing equity ETFs have all embraced these sectors.

Leading the charge is the Valkyrie Bitcoin Miners ETF, showcasing a remarkable return of 227% since the start of 2023. This actively managed fund, listed on Nasdaq, directs investments toward public companies within the Bitcoin mining industry, including Marathon Digital, Riot, and Cipher Mining.

The VanEck digital transformation ETF claims the second spot on the performance list, with a noteworthy 182% return in the same timeframe. Moreover, other key crypto-related ETFs that garnered substantial gains include the Global X Blockchain ETF (BKCH), Bitwise Crypto Industry Innovators ETF (BITQ), and Invesco’s Alerian Galaxy Crypto Economy ETF (SATO), all presenting impressive returns ranging from 162% to 168% thus far in 2023.

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