Investing.com | Editor Rachael Rajan
Published Nov 06, 2023 02:27PM ET
Global investments in spot Bitcoin Exchange-Traded Funds (ETFs) have reached $4.16 billion, marking a significant shift in the cryptocurrency market, according to recent data from CoinGecko. The primary markets for these funds are Canada and Europe, with Canada leading the way with seven Bitcoin ETFs totaling $2 billion. Among these, the Purpose Bitcoin ETF stands as the largest globally with assets of $819.1 million.
Germany is not far behind, holding the second-largest globally traded Bitcoin fund – the ETC Group Physical Bitcoin valued at $802 million, showcasing Europe’s flexible regulatory approach towards cryptocurrencies. G20 group members including Canada, Germany, Brazil, and Australia are among the eight countries that have approved Bitcoin ETFs. Several tax havens such as Jersey, Liechtenstein, Guernsey, and Cayman Islands also offer spot Bitcoin ETFs, contributing significantly to Europe’s crypto-friendly climate.
While the U.S. has remained cautious due to concerns over market manipulation and cryptocurrency fraud, it currently approves only ETFs linked to Bitcoin futures contracts. However, this could change if the Securities and Exchange Commission (SEC) approves up to 10 pending spot Bitcoin ETF applications in the country.
The approval of these ETFs could result in an estimated $155 billion influx into the Bitcoin market due to increased demand. If firms allocate just 1% of their assets under management (AUM) to Bitcoin ETFs, this would represent nearly one-third of Bitcoin’s current market capitalization. Such a development could mark a significant turning point for cryptocurrencies by unlocking new market opportunities.
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Written By: Investing.com