The emergence of Bitcoin ETF Spot is gradually changing the entire cryptocurrency industry, with a total global asset accumulation of $4.16 billion.
According to recent data, investments in Bitcoin ETF Spot assets worldwide have reached the $4.16 billion mark. This is evidence of the increasing acceptance of these innovative financial tools, providing institutional and retail investors with a “safe” way to access Bitcoin.
There are currently 20 Bitcoin ETF Spot funds globally. Canada has been a pioneer in this space, issuing 7 Bitcoin ETF Spot funds with a total investment capital of $2 billion. This demonstrates Canada’s progressive stance on integrating cryptocurrencies into its financial ecosystem.
In Europe, led by Germany, there’s also a more open legal approach. The ETC Group Physical Bitcoin (BTCE.DE), launched in June 2020, currently holds assets worth approximately $802 million, making it the second-largest Bitcoin ETF Spot globally. Additionally, 7 other European ETF funds are based in tax-friendly jurisdictions, further bolstering the crypto-friendly ecosystem in Europe.
As of now, only 8 countries worldwide accept Bitcoin ETF Spot, including Canada, Germany, Brazil, Australia, Jersey, Liechtenstein, Guernsey, and the Cayman Islands. The global distribution of Bitcoin ETF Spot paints a vivid picture of how countries are positioning themselves in the cryptocurrency market.
In contrast to crypto-friendly countries, the United States maintains a more conservative stance. The U.S. Securities and Exchange Commission (SEC) has only approved ETF funds linked to Bitcoin futures contracts, like the ProShares Bitcoin Strategy, currently leading with approximately $1.2 billion in assets.
Could the U.S. Approve Bitcoin ETF Spot?
Although there are 10 pending applications for Bitcoin ETF Spot waiting for approval, concerns about market manipulation remain a significant barrier for the SEC. Consequently, the SEC has continuously postponed making a decision.
However, the debate over whether the U.S. will approve Bitcoin ETF Spot is heating up as experts predict that these funds could channel billions of dollars from traditional finance into the cryptocurrency market.
“We expect $155 billion to flow into the Bitcoin market once these ETF funds are approved. The total assets under management (AUM) of these companies are about $15.6 trillion. If they allocate 1% of their AUM to Bitcoin ETF Spot funds, approximately $155 billion will flow into the Bitcoin market. This amount represents nearly one-third of the current Bitcoin market capitalization.”
Looking ahead, the SEC’s decisions regarding Bitcoin ETF Spot applications could be a turning point, potentially opening a new chapter in the cryptocurrency industry.
“We expect the ETF funds to be approved by the SEC by the end of 2023 or Q1 2024, marking a significant milestone for cryptocurrencies. After the halving, we anticipate that the demand for Bitcoin Spot through ETF funds will far exceed the selling capacity of miners by 6-7 times during peak times. Additionally, Bitcoin ETFs will account for 9-10% of the circulating Bitcoin Spot by 2028.”