According to James Seyffart from the Bloomberg Intelligence analytics team, a Bitcoin (BTC) spot ETF would draw in billions of US dollars. Seyffart further stated that the establishment of a crypto spot ETF would attract a lot more assets to the space. In his own words:
“I can’t help but think that the assets in this space would be even larger if we had more efficient structures, like spot ETFs, in the U.S.”
Seyffart believes this because BTC spot ETFs do not bear the roll costs incurred from managing Bitcoin contracts. As a result, investor demand for the instrument would logically be higher.
The total amount of crypto assets in funds has grown from about $24 billion in 2020 to $63 billion as of now.
The US launched its first-ever BTC fund, the ProShares Bitcoin ETF, in late October of this year. The SEC-approved ETF accumulated up to $1 billion in just a few days of trading. This achievement set a record as the biggest and busiest start of a Bitcoin ETF. In addition, it also subsequently bolstered the crypto market and set the tone for others to follow. However, it is also worth noting that ProShares Bitcoin ETF is not a spot ETF. Rather, it operates by tracking the performance of Bitcoin futures.
Image Credits: Pixabay
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