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Could Spot Bitcoin ETFs push the U.S. towards a 99.5% market share?

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U.S.’s dominance in global crypto ETF trading volume could reach an astounding 99.5% with the approval of spot Bitcoin ETFs.

Could Spot Bitcoin ETFs push the U.S. towards a 99.5% market share?

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  • The approval of spot BTC ETFs could increase U.S. share of crypto ETF trading volume to 99.5%.
  • The U.S.’s attempt to establish itself as a global leader in the crypto ETF landscape awaits the SEC’s decision.

The dominance of the U.S. in global trading volume of crypto-related exchange-traded funds (ETFs) could surge to a staggering 99.5%, provided that spot Bitcoin [BTC] ETFs receive approval, tweeted Bloomberg’s ETF analyst Eric Balchunas.

North America already commands 97.7% of the crypto ETF trading volume, as highlighted by Balchunas.

Spot BTC ETFs could propel US crypto ETFs

The Securities and Exchange Commission (SEC) currently has a list of spot Bitcoin ETF applications pending approval. A decision on the joint ARKB fund from Ark Invest and 21Shares is anticipated by 13 August.

In an interview with Bloomberg, Ark Invest’s Cathie Wood pondered if the regulator might be holding out to approve multiple funds. Balchunas speculated that the percentage of total crypto ETF trading volume could further skyrocket to 99.5% in the U.S.

On 10 August, Bitwise filed an updated prospectus for its ETF fund, transitioning it from a Bitcoin futures ETF to a Bitcoin and Ether Equal Weight Strategy ETF. The move mirrors a similar action taken by Valkyrie on 5 August, when it modified its BTC Futures ETF (BTF) to include Ethereum Futures.

“Cannonball Run in effect,” Balchunas tweeted the following day, indicating the fast-paced changes in the ETF landscape.

Balchunas also highlighted that the top 15 best-performing equity ETFs this year all share exposure to crypto.

At the forefront of this was the Valkyrie Bitcoin Miners ETF, showcasing a YTD return of 227%. The fund invests in the Bitcoin mining sector, including Marathon Digital, Riot, and Cipher Mining.

Coming in second was the VanEck Digital Transformation ETF, boasting a YTD return of 182%.

Further products included the Global X Blockchain ETF and the Bitwise Crypto Industry Innovators ETF. Both of these funds posted a 168% YTD return. Invesco’s Alerian Galaxy Crypto Economy ETF demonstrated a solid performance, delivering a YTD return of 162%.

The escalating presence of crypto ETFs and their remarkable performance underscores the growing significance of cryptocurrencies in the traditional finance markets. The U.S. stands on the cusp of potentially solidifying its dominance in the global crypto ETF market. As the SEC weighs its decisions, the trajectory of the crypto ETF market seems poised for significant shifts.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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