By James Davis
Investments in Crypto Funds Surge
The rising hope for a Bitcoin spot ETF has caused investors to pour money into cryptocurrency funds, per the latest report released by CoinShares. The European crypto asset management firm said that over $345 million was deposited into various crypto exchange-traded products in the third week of November, bringing the total net inflow for this year to $1.5 billion.
According to CoinShares’ report, about $310 million or 89% of last week’s deposits, were channeled to Bitcoin-specific funds. The firm said that the rising crypto prices and inflows have pushed the total value of AUM (assets under management) in digital asset funds to $45.5 billion.
Exchange-Traded Product Defined
For starters, an exchange-traded product is a type of investment vehicle that lists its shares on a stock exchange. The product is intended to track the performance of crypto assets like Ethereum and Bitcoin. It is worth mentioning that a spot ETF is considered an exchange-traded product. However, this type of ETF tracks Bitcoin’s real-time price. The US Securities and Exchange Commission has yet to approve a spot exchange-traded fund.
The Commission has previously argued that the risk of market manipulation and extreme volatility in crypto does not allow a Bitcoin spot ETF to trade in the United States. However, there has been growing hope in recent months that an ETF approval is imminent.
Reports Regarding Bitcoin ETF Cause Crypto Assets to Rally
Developments related to Bitcoin spot ETF have caused crypto prices to rally over the past few weeks. For example, last month, a false report published on X by crypto news platform Cointelegraph regarding the approval of BlackRock’s ETF filing by the SEC saw Bitcoin surge 11% within two hours.
Meanwhile, asset manager CoinShares is keeping a closer eye on the race to have a Bitcoin spot ETF approved in the United States. That’s because the firm said two weeks ago that it was looking to acquire Valkyrie’s exchange-traded fund business. Valkyrie is among the 12 US-based asset managers that filed for a Bitcoin spot ETF earlier this year.
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