Crypto funds hit $50 billion as Bitcoin ETF approval nears

The potential approval of spot Bitcoin ETFs could unlock a flood of institutional investment into the crypto market.

Crypto funds hit $50 billion as Bitcoin ETF approval nears

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The research arm of crypto derivatives firm BitMEX published a blog post last week showing that there are around 160 crypto-related exchange-traded products (ETPs) worldwide, with over $50 billion in assets under management.

These ETPs provide exposure to several tokens, including Bitcoin, Ethereum, Solana, Cardano, Ripple, Avalanche, and Arbitrum, among others.

Grayscale’s Bitcoin Trust (GBTC) claims the top spot on the list. Grayscale’s proposal to convert this product into a spot ETF is under review by the SEC. Joining Grayscale’s ETF are over a dozen other funds from prominent providers like ProShares, 21 Shares, Wisdomtree, VanEck, Fidelity, and Bitwise.

Last month, Bitcoin ETP investments hit a record high of $7.4 billion, per K33 Research. With this list, market analysts anticipate that the potential approval of a spot Bitcoin ETF could multiply institutional inflows into crypto.

In recent months, numerous projections have indicated significant market demand for the spot Bitcoin product. Galaxy forecasts an influx of $14.4 billion within its first year. Glassnode anticipates a staggering $70 billion investment in the spot fund, with 5% sourced from managed funds originally allocated to gold.

Data from ETF research firm ETFGI also provides insights into the growth and investment trends in global crypto ETFs and ETPs. According to the findings, the total global assets invested in these products have surged by nearly 120%, from $5.7 billion at the end of 2022 to $12.7 billion by November 2023.

In November alone, net inflows into these crypto ETFs and ETPs reached $1.3 billion. Surpassing the cumulative figures of the previous year, net inflows for 2023 up to November stand at $1.6 billion.

While the US awaits its first spot Bitcoin fund approval, several countries, including Canada, Brazil, Australia, and Germany, have already welcomed such products.

Canada debuted the world’s first spot Bitcoin ETF in February 2021. Later that year, Fidelity launched its spot Bitcoin fund on the Toronto Stock Exchange. This ETF swiftly amassed $98 million in total assets.

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