The investments in Bitcoin
exchange-traded products (ETPs) increased in the past month due to the
recent wave of applications by asset management companies to list spot Bitcoin
exchange-traded funds (ETFs).
According to a report by
the data analytics platform K33 Research shared with Coindesk, the investments
in ETPs increased by 25,202 Bitcoins (equivalent to USD757 million) to 196,824
Bitcoins in the four weeks to July 16. The figures represent the second-highest
monthly investments in ETPs since the launch of the first Bitcoin-based
futures ETF in 2021.
ProShares Bitcoin Strategy ETF (BITO) was the first Bitcoin-based ETF to debut in the US. Listed on the New York Stock Exchange,
BITO tracks Bitcoin-based futures markets. While an ETP is a type of security
that tracks the price of an underlying asset, an ETF is a specific type of
ETP.
Vetle Lunde, a Senior
Research Analyst at K33 Research, noted in the latest report that BITO had
reached an all-time high in the number of investments, which stood at
4,425 Bitcoins as of July 16. BITO recorded the highest weekly inflow in June
when the price of Bitcoin rose past $30,000.
The Securities and
Exchange Commission (SEC) added six applications for spot Bitcoin ETFs by asset managers in the US to the federal register, giving the commission at
least 45 days to make a decision on the applications.
SEC Expected to Approve
Spot Bitcoin ETFs
Finance
Magnates reported
recently that the SEC was seeking
public opinion about
the spot Bitcoin ETF applications, including an application by BlackRock, the
largest asset management company globally. The release of the report for public
opinion is the initial step in processing the applications.
BlackRock submitted an
application to the SEC to list a spot Bitcoin exchange-traded fund that will
use Coinbase’s custodian services. The application was followed by similar
applications from asset managers, including WisdomTree, Invesco, VanEck,
and Bitwise.
The
renewed efforts to seek the approval of a spot Bitcoin ETF arrive at a time the
regulator has rejected
applications for such
funds in the past. The authority maintains that spot Bitcoin ETFs do not meet
the standards to prevent fraudulent and manipulative market practices.
The investments in Bitcoin
exchange-traded products (ETPs) increased in the…
