Bitcoin Funds See Influx of $61 Million in New Capital
Publicly traded crypto funds received a significant boost on Monday with over $61 million in new capital. This amount represents more than 10% of all net deposits into crypto funds since the beginning of the year. The majority of the funds were funneled into Bitcoin funds, as investors eagerly await the arrival of a Bitcoin ETF in the U.S. market. Of the total inflows, $57 million went into BTC-based funds, while $5.7 million was invested in Solana (SOL).
International Investors Drive the Inflows
The majority of the capital influx came from investors in Germany and Canada, with very little contribution from the U.S. This lack of activity from U.S. investors is likely due to their anticipation of approval for a physical Bitcoin ETF.
Race for a Spot Bitcoin ETF
Grayscale and 21Shares are competing to launch a spot Bitcoin ETF alongside other major funds. The Court of Appeals recently ordered the Securities and Exchange Commission (SEC) to review Grayscale’s previously denied application. Additionally, the SEC is required to make a decision on the Ark/21Shares Bitcoin ETF application by January 10.
Hot Take: Growing Interest in Bitcoin ETFs Drives Capital Influx
The surge in new capital into Bitcoin funds highlights the growing interest among investors for a spot Bitcoin ETF in the U.S. market. As Bitcoin’s price continues to rise, investors are eager to gain exposure to this digital asset through regulated investment vehicles. The competition between Grayscale, 21Shares, and other major funds intensifies as they strive to launch a Bitcoin ETF that meets regulatory requirements. With international investors leading the way, it remains to be seen which fund will secure approval and provide U.S. investors with the opportunity to invest in a physical Bitcoin ETF.
By
By
By
By
By
By