According to a recent analysis by Bloomberg, the United States could potentially make up a staggering 99.5% of the global trading volume for crypto-related exchange-traded funds (ETF) — a leap from its current stake of 97.7%. However, this forecast relies on a single pivotal factor: the approval of spot Bitcoin ETFs by the regulatory bodies. Right now, there is a long list of spot Bitcoin ETF applications languishing in the wings, awaiting the nod from the Securities and Exchange Commission.
There has been speculation made by Cathie Wood, CEO of Ark Invest, in a Bloomberg interview suggesting that the regulator could be waiting to approve multiple funds at once. This speculation arose in lieu of the regulator’s recent trend of delaying its decisions, as observed in the case of the joint ARKB fund by Ark Invest and 21Share.
Simultaneously, there’s been a flurry of movement in the ETF sphere, as clearly depicted by Bitwise filing an updated prospectus to make a switch from a Bitcoin futures ETF to the “Bitwise Bitcoin and Ether Equal Weight Strategy ETF”. This echoes a similar move made by Valkyrie. Such developments may cause one to wonder: Are these precursor signs of a burgeoning revolution in the crypto ETF charts?
Now, let’s cast a glance at the provocative performance chart of crypto-related ETFs. As highlighted by Balchunas, there’s a striking similarity between the top 15 exchange-traded funds: They all have exposure to crypto and blockchain. The Valkyrie Bitcoin Miners ETF, for instance, has registered a staggering return of 227% since 2023’s beginning. If one were to trace the source of these staggering returns, one might find a compelling reason to believe that the performance of the Top 15 crypto-related ETFs greatly hinges on the performance of the public companies they invest in.
However, the question that lurks in everyone’s mind is: Will the future see non-US ETFs playing a more prominent role in the global trading dynamics? Or is the US poised to bolster its standing as a crypto giant, snatching up nearly all the global trading volume for crypto-related ETFs? Only time will tell.
Regardless of how the pendulum swings, it’s clear that both scepticism and optimism march hand in hand in this volatile yet promising ecosystem. After all, crypto ETFs are more than just investment vehicles—they’re potent indicators of the changing tides in the landscape of crypto trading.
Source: Cointelegraph
