Bitcoin ETF remain in high-demand, investors eye potential next approval in coming days

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Bitcoin ETFs remain strongly in demand as the wider investor community seeks exposure to digital assets without jumping into the jargon-filled crypto exchanges.


BITO, the Proshares Bitcoin futures exchange-traded fund, was the first American ETF to get the green light from the US Securities and Exchange Commission’s (SEC) last month, on 19 October – and has seen some US$1.4bn of inflows into the fund since then.


It has marked out BITO as a standout fund, surging into the top 2% of all ETFs for trading volume globally.


On launch day alone, BITO saw US$567mln of inflows, while its second day saw US$490mln flow in, making it the fastest ever ETF to reach US1bn of assets under management.


“This kind of consistent flow-age is highly rare for a newly launched ETF,” commented Eric Balchunas, Bloomberg senior ETF analyst.


BITO’s price on 11 November was US$42.30, marking an upside of 3.5% from its inception price of US$40.88.


Elsewhere, VanEck is seeking to become the first Bitcoin spot ETF on 14 November, subject to the SEC’s approval.


But, it is seen as having a bleak chance of success in front of the regulator, Bloomberg’s Balchunas predicting only a ‘200/1 chance’ of approval.


What are the other approved Bitcoin ETFs?


Just a matter of days after BITO was approved the Valykyrie Investment’s Bitcoin Strategy ETF was certified by the SEC, under the ticker ‘BTF’.


Its inception price on 22 October was US$25.37 and has risen by around 3% as of 11 November to US$26.06.


Down-under, the Australian Securities Exchange (ASX), followed America’s lead by approving its first crypto ETF with BetaShares’ Crypto Innovators (CRYP) getting the nod, on 4 November.


It launched at US$11.19, before climbing just over 10% within the first five days of trading, before easing back to US$11.24, just 0.5% upside from its inception price.


In its marketing assets, you’ll see that CRYP recorded the highest levels of inflows in the first hour in the history of ETFs on the ASX.


Here in Europe, meanwhile, the BTCetc – ETC Group Physical Bitcoin was the first crypto exchange-traded product (ETP) and it has been trading for a long time, since June 2020, and today has a price of US$65.46, an upside of over 500% from its inception price of just under US$10.


BTCetc is run by HanEtf and it is listed on Xetra in Frankfurt, under the ticker BTCE.


Which other Bitcoin ETFs are awaiting approval?


The Global X Bitcoin Trust is due a SEC decision on 21 November, and word on the Valkyrie XBTO Bitcoin Futures Fund is set for 8 December.


WisdomTree Bitcoin Trust’s decision is scheduled for 11 December, while Kryptoin Bitcoin ETF’s ruling is planned for 24 December.


Other bitcoin ETFs awaiting approval include Wise Origin Bitcoin Trust and Grayscale Bitcoin Trust.

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