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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.

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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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James Davis

By James Davis

James Davis is a prominent crypto writer and analyst at Herald Sheets, recognized for his well-researched articles and thorough analysis of the dynamic digital currency market. Holding a degree in Economics from Harvard University, James combines his academic background with a keen interest in cryptocurrency to provide readers with the latest industry insights and trends.

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