Global Crypto Fund Volume Represents 99.5%
- admin_hrv2xlob
- March 21, 2024
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Approval of Spot Bitcoin ETFs in the United States Could Lead to North America Dominating Crypto Fund Trading Volume
According to Bloomberg analyst Eric Balchunas, the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States could result in North America capturing 99.5% of global crypto fund trading volume. Balchunas made this prediction in a recent Twitter post, where he revealed that North America already accounts for 97.7% of worldwide crypto ETF trading volume.
The potential impact of U.S. spot crypto ETF approval is further highlighted by the current dominance of blockchain and crypto-focused funds among the top ETF performers this year. Balchunas stated that the top 15 best-performing equity ETFs in 2023 will all have exposure to the crypto and blockchain space. The Valkyrie Bitcoin Miners ETF is currently the top performer, with year-to-date returns of 227%.
In light of this, the approval of spot Bitcoin ETFs in the U.S. could have significant implications for the cryptocurrency market. Currently, there are several spot Bitcoin ETF applications under review by the Securities and Exchange Commission (SEC). The regulator’s decision on Ark Invest and 21Shares’ joint Bitcoin ETF application is expected by August 13, although an extension is likely.
However, the SEC has remained cautious and expressed concerns about crypto market manipulation and investor protection. This caution has delayed the approval of spot ETFs thus far. Nonetheless, if and when spot crypto ETFs are approved, it could unleash a wave of institutional investment, pushing Bitcoin and other cryptocurrencies further into the mainstream.
Some of the leading crypto ETFs include the Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) and the Bitwise Crypto Industry Innovators ETF (BITQ), both of which invest in crypto infrastructure and Web3 companies. These ETFs, along with others in the crypto and blockchain space, have demonstrated strong performance this year and are expected to continue to attract investors.
The spotlight is now on the SEC and its decision regarding spot Bitcoin ETFs. If approved, North America’s dominance in crypto fund trading volume is expected to increase significantly, potentially reaching 99.5%. This would solidify North America’s status as a key player in the global crypto market and further drive the adoption of cryptocurrencies.