By Hassan Mehmood (Saudi Arabia)
Regulators in the USA recently approved 11 Spot Bitcoin ETF applications. The topic remained an important point of discussion in the TradeFi and DeFi financial circles. CoinShares recently reported that Bitcoin spot ETFs printed weekly high trading volumes for the new investment products.
The analysts have noted that during the last few weeks, trading volume and inflows have been topping charts. On 15th January 2024 CoinShares published a report titled Digital Asset Fund Flows.
Researcher James Butterfill noted in the report that US-based funds reported a whopping inflow of $1.24 billion on 12th January 2024. However, ETFs listed in Canada, Sweden, and Germany reported outflows citing investors opting out of European funds and redirecting to the US.
In this manner, the investors hailing from Canada reported around $44.2 million in net outflows with ranking at the top in this regard. While Sweden-based ETFs gained $24.2 million in inflows.
US SEC Approved 11 Spot Bitcoin ETFs
As projected by Bloomberg ETF analysts James Seffart and Eric Balchunas, the Securities and Exchange Commission of the US approved 11 spot Bitcoin ETFs on 10th January. The regulatory agency approved another 10 fund applications the next day.
Also read:James Butterfill, the head of research at CoinShares, noted that the launch of spot Bitcoin ETFs printed record trading volumes in the form of digital asset investment products. The report suggested a new weekly ATH of $17.5 billion in trading volume. Butterfill further stated that the aggregate weekly inflows reached $1.18 billion.
However, he stated that Bitcoin futures ETFs launched in October 2021 generated $1.5 billion in inflows during the first week. At the same time, Bitcoin-based funds and products also reported record-breaking inflows at $1.16 billion for the week.
Meanwhile, ETH-based funds reported $25 million in terms of same metrics. Investors also generated $4.1 million in positions in the form of capital inflows in Bitcoin short funds.
Bitcoin Strategy Fund
As per Butterfill’s research report, XRP recorded $2.2 million while Solana remained an exception with $500K in inflows. At the same time, ProShares remained the top weekly gainer with $265.2 million inflows for its Bitcoin Strategy ETF.
In the same manner, Grayscale Investments reported $579.1 million in outflows. Ark Invest CEO sold 510,337 ProShares Bitcoin Strategy ETF (BITO) shares. The executive proceeded to acquire 316,526 Ark 21Shares (ARKB) units valued at $13 million.
Fund Management Strategy
Analysts believe that it is only a matter of time before Ark Invest introduces an active fund management strategy to the Bitcoin-backed ETFs. The firm sold 758,916 units of ARK Next Generation Internet ETF (ARKW) at $15 million to purchase 365,695 units of additional ARKB on 18th January. Thus far, ARKW has acquired 1.04 billion ARKB shares valued at $43 million during the last 7 days.
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