By Tom Blitzer
Key Insights:
- US could seize 99.5% of global crypto ETF trading with spot Bitcoin ETF approvals.
- Every top 15 equity ETF in 2023 is linked to crypto or blockchain.
- This year, the Valkyrie Bitcoin Miners ETF leads with a stunning 227% return.
The United States is poised to capture 99.5% of the global trading volume for cryptocurrency-related exchange-traded funds (ETFs). However, this is contingent upon the anticipated approval of spot Bitcoin ETFs.
Eric Balchunas, a seasoned ETF analyst with Bloomberg, recently shared his insights. North America, he revealed, currently commands a dominant 97.7% of the worldwide crypto ETF trading volume. He hypothesized on a platform, “If/when spot ETFs come out in the U.S. this will likely go to like 99.5%.”
Worldwide Crypto ETF Trading Volume (Source: Eric Balchunas via X)
Besides, the US Securities and Exchange Commission is sifting through a substantial queue of spot Bitcoin ETF applications. Significantly, Ark Invest, in collaboration with 21Share, is keenly awaiting the regulator’s verdict on their joint ARKB fund by Aug. 13. Though many anticipate a delay, Ark CEO Cathie Wood, during a Bloomberg interview, mused that the regulator might approve multiple funds simultaneously.
Moreover, on Aug. 10, Bitwise made waves by revising its BITC fund prospectus. They aim to transition from a Bitcoin futures ETF to a more diversified “Bitwise Bitcoin and Ether Equal Weight Strategy ETF.” This strategic move is reminiscent of Valkyrie’s decision on Aug. 5, which expanded its BTC Futures ETF (BTF) to encompass Ethereum Futures. Balchunas, not one to mince his words, aptly remarked, “Cannonball Run in effect” on Aug. 11.
Crypto ETFs Shattering Performance Metrics
Balchunas also shed light on a noteworthy trend. Each of the 15 top-performing equity ETFs this year is tied to crypto or blockchain. Additionally, the Valkyrie Bitcoin Miners ETF emerged as the top dog, delivering over 227% return since the start of 2023. Available on Nasdaq, this actively managed fund pours its investments into titans of the Bitcoin mining industry, such as Marathon Digital, Riot, and Cipher Mining.
Hence, the soaring stocks of these top-tier mining firms might be the secret sauce behind the astronomical performance of offerings like WGMI. The VanEck digital transformation ETF clinched the second spot, boasting a return of 182%. This DAPP fund keeps its fingers on the pulse by investing in crypto mining mavericks and tech giants, including Coinbase, MicroStrategy, and Galaxy Digital.
Furthermore, other crypto-centric ETPs have carved their niches. The Global X Blockchain ETF (BKCH) has risen 168% this year. Similarly, the Bitwise Crypto Industry Innovators ETF (BITQ) matched this ascent with a 168% return. Not to be outdone, Invesco’s Alerian Galaxy Crypto Economy ETF (SATO) has surged by 162%.
In conclusion, as the crypto world continues its meteoric rise, the United States stands on the cusp of asserting unprecedented dominance in the global crypto ETF market. With spot Bitcoin ETFs on the horizon and current crypto ETFs breaking performance ceilings, the landscape is poised for transformative shifts.