As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless transformations and trends. The recent flurry of crypto ETF filings, particularly by Bitwise, is an intriguing development that I find myself closely watching.
After submitting a proposal for a fund based on Ripple (XRP) to the U.S. Securities and Exchange Commission, Bitwise has filed another application for a Crypto ETF.
Bitwise has continued a flurry of applications for exchange-traded funds (ETFs), by submitting a new application focusing on Bitcoin (BTC) and U.S. Treasuries. As reported by James Seyffart from Bloomberg, this proposed fund, designated BITC, would shift capital between the leading digital currency and the well-known short-term U.S. government debt instrument.
After first applying for the fund in December, Bitwise recently updated their paperwork and changed the name of their latest cryptocurrency investment vehicle to the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF. This is the third ETF application from the crypto index fund manager this week. On October 1st, the financial advisor plans to expand its digital asset product offerings by registering a Delaware Trust for a potential XRP ETF.
In simpler terms, Bitwise submitted the required Form S-1 documentation with the United States Securities and Exchange Commission (SEC) on October 2, which signified their request for the regulatory approval to sell securities on Wall Street.
Bitwise Investments has submitted a new ETF proposal. This ETF will employ a strategy that rotates between Treasuries and Bitcoin, and the ticker symbol for this fund will be $BITC.
— James Seyffart (@JSeyff) October 4, 2024
To have a Bitwise XRP ETF, or any crypto ETF, available for trading on national stock exchanges, the SEC must first grant approval for both Form S-1 documents and 19b-4 Forms.
In early Q4, there was an increase in crypto investment fund filings, which is typically a sign of optimism in the cryptocurrency market. Analysts from CryptoQuant and QCP Capital have suggested that there’s growing interest among institutions in Bitcoin and other cryptos like Ethereum (ETH) and Solana (SOL), even amidst ongoing conflicts in the Middle East and recent institutional withdrawals.
As an analyst, I’ve observed a remarkable success story with the introduction of Bitcoin ETFs, specifically the U.S. spot ones, which took off in January. Notably, these ETFs now control close to 5% of the total 21 million Bitcoins in circulation, according to Glassnode’s recent data.
Approximately 4.6% of all existing Bitcoins are held by U.S. Spot Exchange-Traded Funds (ETFs), equivalent to a value of around $58 billion. The growth in these balances has been accentuated by the addition of Grayscale’s Bitcoin Mini Trust holdings, indicating a robust institutional interest in obtaining controlled access to Bitcoin investment opportunities.
— glassnode (@glassnode) October 4, 2024
Simply put, more than $58 billion has been invested by investors in Bitcoin funds that can be bought instantly (spot Bitcoin funds). Many experts predict this investment trend will grow stronger as we move further into the last three months of the year.
On the other hand, Ethereum ETFs have lagged behind Bitcoin ETFs in growth. The total assets held by Ethereum ETFs, as reported by SoSoValue, amount to around $6.4 billion, which is less than 10% of the assets managed by Bitcoin ETFs. Bitwise CIO Matt Hougan predicts that Ethereum ETFs will catch people’s attention in the coming year, although he acknowledges that Ethereum funds might have been launched prematurely.
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2024-10-04 18:16