21 April, 2024



U.S. Crypto ETF Volume Set to Surge to 99.5% with Spot Bitcoin ETFs

11 Aug, 2023

10 Nov, 2023

  • Bloomberg’s Eric Balchunas reveals that the U.S. could command 99.5% of global crypto ETF trading volume with the approval of spot Bitcoin ETFs.
  • Top-performing crypto-related ETFs include the Valkyrie Bitcoin Miners ETF, with a 227% return since 2023, reflecting the growing influence of crypto.
  • Bloomberg Intelligence analysts raised the likelihood of U.S. spot Bitcoin ETF approval to 65%, up from a previous 50% estimate.

According to insights from Bloomberg’s senior ETF analyst, Eric Balchunas, the U.S. is poised to command a staggering 99.5% share of the worldwide trading volume for crypto-related exchange-traded funds (ETFs). He asserted that this remarkable growth hinges on the greenlighting of spot Bitcoin ETFs.

In a recent tweet, Balchunas speculated that the U.S. crypto ETF share could skyrocket:

As of August 10, the trading volume for crypto ETFs in North America stood at 97.7%. Balchunas speculated that the U.S. could see this figure rise to 99.5% with the authorization of spot Bitcoin ETFs.

Balchunas’ observations coincide with a period of substantial transformation within the crypto sector. Companies such as Bitwise and Valkyrie are modifying their funds to encompass Bitcoin and Ether strategies. Additionally, all of the top 15 performing exchange-traded funds are linked to crypto and blockchain technologies.

Among the standout performers, the Valkyrie Bitcoin Miners ETF reported a 227% return since the onset of 2023. Other noteworthy crypto-related ETPs include the Global X Blockchain ETF (BKCH), with a year-to-date return of 168%, and Invesco’s Alerian Galaxy Crypto Economy ETF (SATO), which has gained 162% in 2023.

Earlier, Bloomberg Intelligence analyst, James Seyffart along with Balchunas, revised their predictions for the U.S. approval of spot Bitcoin ETFs this year, elevating the likelihood to 65%, up from an earlier estimate of 50%. The Securities and Exchange Commission (SEC) is currently reviewing an extensive array of applications for spot Bitcoin ETFs. 

The decision regarding Ark Invest’s and 21Share’s combined ARKB fund is slated for August 13, though many anticipate a postponement. A host of prominent institutions have submitted applications for a spot Bitcoin ETF. The SEC’s apparent endorsement of Coinbase’s Bitcoin trading platform has infused a sense of optimism into the market.

In a related story, Galaxy Digital’s CEO, Mike Novogratz, has also expressed optimism about the U.S. approving its first Bitcoin ETF. He emphasized the significance of the development, and according to his insights, the decision would likely come within a six-month window.

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