Bitcoin exchange-traded funds (ETFs) are experiencing a phenomenal year of growth, highlighted by a recent surge in investments, reports Eric Balchunas of Bloomberg. Following a brief downturn in June, momentum has roared back, with daily investments reaching $300 million, culminating in a weekly total of $1 billion.
This surge has propelled year-to-date investments in Bitcoin ETFs to $16 billion, surpassing initial projections of $12-15 billion for the entire year, with six months still remaining, according to industry experts.
Balchunas, when queried about the potential for Ethereum ETFs, estimated their appeal could capture approximately “20% of what we’ve seen with Bitcoin,” indicating a promising outlook for the crypto ETF market.
Further enhancing market optimism, the SEC recently granted preliminary approval for ETFs tied to Ethereum. This development clears the path for a new wave of alternative coin (altcoin) ETFs, poised to commence trading as early as July 23.
This surge in Bitcoin ETF investments underscores growing interest in cryptocurrencies, providing a regulated avenue for investors to participate in this dynamic market without the complexities of direct ownership.
The anticipated introduction of ETH ETFs stands to further democratize access to this rapidly evolving asset class, potentially attracting a broader spectrum of investors eager to capitalize on cryptocurrency opportunities.
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