The crypto world is abuzz with excitement, and for a good reason. BitMEX Research has revealed some groundbreaking insights. The landscape of cryptocurrency exchange traded products (ETPs) valued at $50.3 billion is set to undergo a radical transformation.
If the rumors of the imminent launch of a spot Bitcoin exchange-traded fund (ETF) in the U.S. are true, it is expected to dwarf the existing crypto-related ETFs. So, what does this mean for you? Read on to find out more!
Currently, the global ETP market (which includes both futures and spot funds) is dominated by products that track the performance of major cryptocurrencies like Bitcoin and Ethereum. Grayscale’s Bitcoin Trust, the largest ETP, is in the process of converting into a spot ETF.
The U.S. Securities and Exchange Commission (SEC) is expected to give the go-ahead for a Bitcoin ETF as soon as January 10. Analysts from Bitwise believe that these spot investments could be a game-changer, with Bitcoin ETFs commanding assets of $72 billion in the next five years, which is a two-fold increase over the current figures. However, Van Eck, a prominent global fund manager, is more conservative in its forecast, predicting that around $2.4 billion will be invested in crypto products during the first quarter of 2024.
Spot Bitcoin ETFs are not a new product on the market, with countries like Canada, Australia and Germany already offering them to investors. The $1.6 billion net inflows into crypto ETFs in the last year, as well as the significant rise in investment in crypto products, is evidence of the growing interest from institutions.
Among the 150 crypto funds, a few ETFs have been the investor favorites, with $1.3 billion being invested in them over the next 12 months. ProShares Bitcoin Strategy ETF (BITO), launched in October 2020 during a bull crypto market, was the largest individual inflow, with $278.7 million invested in 2021.
The crypto market is about to get a lot more interesting (or even scary!). Buckle up!
