Bitcoin Exchange-Traded Products (ETPs) Post Record Monthly Investments

Wednesday, 19/07/2023 | 10:24 GMT by Jared Kirui

The inflows were the second-highest since the launch of the first Bitcoin-based ETF.

The recent applications for spot Bitcoin ETFs await the SEC’s approval.

The investments in Bitcoin exchange-traded products (ETPs) have increased in the past month due to the recent wave of applications by asset management companies to list spot Bitcoin exchange-traded funds (ETFs).

According to a report by the data analytics platform, K33 Research shared with Coindesk, the investments in ETPs increased by 25,202 Bitcoins (equivalent to USD $757 million) to 196,824 Bitcoins in the four weeks to July 16. The figures represent the second-highest monthly investments in ETPs since the launch of the first Bitcoin-based futures ETF in 2021.

ProShares Bitcoin Strategy ETF

ProShares Bitcoin Strategy ETF (BITO) was the first Bitcoin-based ETF to debut in the US. Listed on the New York Stock Exchange, BITO tracks Bitcoin-based futures markets. While an ETP is a type of security that tracks the price of an underlying asset. An ETF is a specific type of ETP.

Vetle Lunde, a Senior Research Analyst at K33 Research, noted in the latest report that BITO had reached an all-time high in the number of investments, which stood at 4,425 Bitcoins as of July 16. BITO recorded the highest weekly inflow in June when the price of Bitcoin rose above $30,000.

The Securities and Exchange Commission (SEC) added six applications for spot Bitcoin ETFs by asset managers in the US to the federal register, giving the commission at least 45 days to make a decision on the applications.

SEC Expected to Approve Spot Bitcoin ETFs

Recently, Finance Magnates reported that the SEC was seeking public opinion about the spot Bitcoin ETF applications, including about an application by BlackRock, the largest asset management company globally. The release of the report for public opinion is the initial step in processing the applications.

BlackRock submitted an application to the SEC to list a spot Bitcoin exchange-traded fund that will use Coinbase’s custodian services. The application was followed by similar applications from asset managers, including WisdomTree, Invesco, VanEck, and Bitwise.

The renewed efforts to seek the approval of a spot Bitcoin ETF arrive at a time when the regulator has rejected applications for such funds in the past. The authority maintains that spot Bitcoin ETFs do not meet the standards to prevent fraudulent and manipulative market practices.