Crypto enthusiasts and investors have shown a profound interest in bitcoin exchange-traded products (ETPs), as per new data from K33 Research. Amidst the buzzing news of BlackRock’s filing for a spot-based ETF on June 15, an unprecedented amount of money flowed into bitcoin ETPs. The research detected that BTC-equivalent exposure of ETPs listed globally ballooned by 25,202 BTC, around $757 million, in the four weeks leading up to July 16, pushing the total BTC-equivalent exposure to a significant 196,824 BTC.
Intriguingly, this influx is the second-highest monthly net inflow, trailing only the eye-popping splurge following the kickoff of ProShares’ futures-based ETF and numerous others in October 2021. As for ETPs, they comprise a substantial echelon of listed products that echo the performance of an underlying financial asset. Also held under the ETP umbrella are Exchange Traded Funds (ETFs), which often encompass diverse financial commodities within a specifically themed range.
That being said, the stark difference between the reception of crypto-based ETFs in the USA and Europe cannot be overlooked. The Securities and Exchange Commission (SEC) throws numerous hurdles on the path of listing such ETFs while in Europe, there is an abundance of ETPs on offer by a variety of issuers.
Alongside, there’s also been a noteworthy development with BITO, which recently recorded an all-time high of bitcoin equivalent exposure at a staggering 4,425 BTC. BITO provides a bone fide product, linking returns to bitcoin and holds over $1 billion in BTC futures from CME Bitcoin. Still, a cautionary note from the data suggests that such surges in BITO activities have typically coincided with local market tops.
Speaking of which, another engaging entry in this cryptic narrative is the Toronto-listed bitcoin ETF BTCC from Purpose Investments. According to reports, this gem too is tasting a substantial increase in inward flows. In conclusion, the ignited interest and accelerated influx in bitcoin ETPs clearly complement the monumental rise and acceptance of digital assets, thus signifying a positive future for both investors and the crypto world. But one can’t ignore the risk of local market tops accompanying these surges, keeping the overall market narrative on a knife’s edge.
Source: Coindesk
