How Spot Bitcoin ETFs Can Revolutionize US Crypto Trading Volumes!

The global trading landscape for crypto-related exchange-traded funds (ETFs) is witnessing a significant influence from North America, particularly the United States. As per insights shared by Bloomberg senior ETF analyst Eric Balchunas, North America presently commands a substantial 97.7% share of the overall crypto ETF trading volume. This dominance is poised to potentially escalate to a staggering 99.5%, assuming the approval of spot Bitcoin ETFs in the United States.

The ongoing surge in demand for crypto ETFs has prompted several market participants to file applications with the Securities and Exchange Commission (SEC) for approval. A notable list of spot Bitcoin ETF applications is awaiting a regulatory decision. In a recent Bloomberg interview, Cathie Wood, CEO of Ark Invest, speculated that the SEC could be considering the simultaneous approval of multiple funds to capitalize on the growing interest in crypto ETFs.

Additional Read: Bitcoin Price Prediction

Key Takeaways:

• North America’s crypto ETF trading volume is at 97.7% globally.
• Potential approval of spot Bitcoin ETFs could increase North America’s dominance to 99.5%.
• SEC’s upcoming decision on various ETF applications could shape the market landscape.
• The top-performing equity ETFs this year are all crypto-related.

The Crypto ETF Performance Landscape

A notable trend that Eric Balchunas observed is that the top-performing equity ETFs this year are all linked to the crypto and blockchain sectors. The Valkyrie Bitcoin Miners ETF has emerged as a standout performer with an impressive 227% return since the start of 2023. This ETF focuses on investments in public companies engaged in Bitcoin mining, such as Marathon Digital, Riot, and Cipher Mining.

Another good chart from the report is this one: North America accounts for 98% of all the crypto ETF trading volume in the world. If/when spot ETFs come out in US this will likely go to like 99.5%. pic.twitter.com/nEF7dcaQu4

— Eric Balchunas (@EricBalchunas) August 10, 2023

The VanEck digital transformation ETF follows closely with a substantial 182% return this year. The DAPP fund, another strong contender, tracks several crypto mining and technology firms, including Coinbase, MicroStrategy, Galaxy Digital, Canaan, and Hive.

Other notable crypto-related Exchange-Traded Products (ETPs) also showcase remarkable returns, including the Global X Blockchain ETF (BKCH) at 168% YTD, Bitwise Crypto Industry Innovators ETF (BITQ) also at 168%, and Invesco’s Alerian Galaxy Crypto Economy ETF (SATO) at 162% so far in 2023.

Every single one of the Top 15 best performing equity ETFs this year is crypto-related. $WGMI leading way w +227%. Finally attracting flows too, altho pretty modest considering these perf numbers. This is part of our monthly Crypto ETF Report via @JSeyff & @SirYappityyapp pic.twitter.com/iPIHhH82Jr

— Eric Balchunas (@EricBalchunas) August 10, 2023

Read More: Spot Bitcoin ETF Anticipating Market Impact

Conclusion

The evident dominance of North America, particularly the United States, in the realm of crypto ETF trading, is a noteworthy phenomenon. As market participants await regulatory decisions, the potential approval of spot Bitcoin ETFs holds the promise of further amplifying North America’s influence in the global crypto ETF landscape. This dynamic interplay between market trends, regulatory decisions, and investor interest continues to shape the evolving narrative of the crypto ETF sector.

Source: Cointelegraph

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