If SEC chooses to approve all spot Bitcoin ETF applications, the US will be at the center of the crypto ETF market.
The looming approval of spot Bitcoin ETFs in the US might catapult the nation to holding a staggering 99.5% of worldwide crypto ETF trading volumes, a notable jump from its current 97.7%, forecasts a prominent ETF analyst from Bloomberg.
Bloomberg's senior ETF analyst, Eric Balchunas, shared his insights in an August 10th tweet, hinting at the possible global dominance the US could gain if it greenlights spot Bitcoin ETFs.
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A slew of spot Bitcoin ETF applications is in the SEC's evaluation pipeline. Notably, the regulator's verdict on the joint ARKB fund by Ark Invest and 21Share is anticipated by August 13th. However, many anticipate a postponement in this decision.
During a conversation with Bloomberg on August 7th, Ark's CEO, Cathie Wood, claimed that the SEC might opt for a simultaneous approval of several funds.
Furthermore, Balchunas highlighted a notable trend among top-performing ETFs: significant crypto and blockchain exposure. He asserted:
Every single one of the Top 15 best-performing equity ETFs this year is crypto-related.
At the top of this list was the Valkyrie Bitcoin Miners ETF, boasting a 227% return since the beginning of 2023.
Not far behind on the performance roster was the VanEck digital transformation ETF, delivering an impressive 182% return for the year. It closely observes an array of crypto mining and tech giants, such as Coinbase, MicroStrategy, and Galaxy Digital.
In a related development, on August 10th, Bitwise updated its BITC fund prospectus, transitioning from a Bitcoin futures ETF to the "Bitwise Bitcoin and Ether Equal Weight Strategy ETF." This strategic shift echoes Valkyrie's August 5th decision to enhance its BTC Futures ETF (BTF) to encompass Ethereum Futures.
Balchunas commented on the new developments in an August 11th tweet, noting:
Bitwise is pulling a Valkyrie who pulled an $MJ (using name/strategy change to bypass the initial filing process and in this case get out earlier). Cannonball Run in effect.
The unfolding landscape of the US crypto ETF market, coupled with its potential global dominance, underscores the pivotal role of crypto and blockchain in reshaping traditional investment avenues. As the SEC mulls over approvals, America's position in the evolving crypto ETF panorama seems poised for unprecedented growth.
