Global assets in spot bitcoin ETFs hit $4.16 billion

According to report by By Suzanne McGee

According to cryptocurrency data and analysis company CoinGecko, assets invested in exchange-traded funds (ETFs) linked to Bitcoin's spot price now total $4.16 billion globally.

In Canada, a significant portion of the total investment of $4.6 billion in bitcoin ETFs is in the seven ETFs launched since 2021, amounting to $2 billion. The Purpose Bitcoin ETF, with assets worth $819.1 million, is the largest among the 20 ETFs available in the country.

Currently, only ETFs linked to futures contracts, such as ProShares Bitcoin Strategy, which has approximately $1.2 billion in assets, have been approved by U.S. regulators. The Securities and Exchange Commission (SEC) in the United States is currently reviewing up to 10 applications to launch spot-based ETFs that are similar.

Futures-based ETFs for tracking Bitcoin's performance in an exchange-traded product are considered imprecise and more expensive. Despite several applications for spot Bitcoin ETFs, the SEC has denied them all, citing the inability of applicants to demonstrate safeguards against market manipulation, thus failing to protect investors.

According to CoinGecko, some regulatory regimes have been more open to the idea of Bitcoin exchange-traded funds (ETFs). In June 2020, Germany's ETC Group Physical Bitcoin became the first ETF to be launched. It has now accumulated $802 million in assets, making it the second-largest ETF to date.

It's worth noting that Europe's seven other ETFs are incorporated in tax havens including Jersey, the Cayman Islands, and Liechtenstein. Additionally, there are smaller products traded in Brazil and Australia. It's important to keep this in mind when considering investment options.

It is uncertain if the potential US Bitcoin ETFs will surpass the Canadian and German ETFs in investor interest, according to Coin Gecko.

The U.S. spot bitcoin ETF market has the potential to be enormous, with estimates suggesting that it could generate over $1 billion in first-day demand. There is currently a heated debate surrounding this topic among experts, but the potential for significant growth in this market cannot be denied.