Spot Bitcoin ETFs within the U.S. may eclipse your complete cryptocurrency exchange-traded product (ETP) market.
As BitMEX analysts note, the cryptocurrency ETP market has 150 merchandise and has a valuation of $50.3 billion as of Dec. 22, 2023.
The record consists of spot and futures funds that sometimes monitor the efficiency of Bitcoin (BTC) and Ethereum (ETH). The biggest ETP on the record is Grayscale’s Bitcoin Belief, which is presently making an attempt to transform right into a spot ETF product.
Of the 150 crypto funds, the 20 largest ETFs attracted essentially the most funding, totaling $1.3 billion inflows throughout 2023.
“With the supposedly imminent approval of the Bitcoin spot ETFs by the SEC in america, this dataset and evaluation derived from it might be fascinating. For instance, it may very well be helpful in figuring out the extent to which the spot Bitcoin ETF cannibalizes current exchange-traded merchandise or attracts new capital into the cryptocurrency area.”
The race to launch the instrument in america lasts for a number of years. Its approval is expected in January 2024. Bloomberg Intelligence analysts have instructed that the spot Bitcoin ETF market may develop to $100 billion.
Crypto funding fund Bitwise additionally predicted that spot Bitcoin ETFs would change into essentially the most profitable ETF product launched, anticipating them to seize about $72 billion in belongings beneath administration over the following 5 years, greater than doubling the present market.