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Institutional interest in it is increasing, as data from Coingecko shows that the 12 largest Bitcoin exchange-traded funds (ETFs) worldwide now hold a total of 102,619 BTC as of Friday. Although this represents less than half a percent of the total Bitcoin supply, it represents a notable shift in the cryptocurrency market.
Among these funds, the ProShares Bitcoin Strategy ETF is the leading fund with 35,890 BTC. This fund is considered not only the oldest, but also the largest in its category. ProShares has two entries in the top 12 list of Bitcoin ETFs, which together account for 16.6% of the market share. Both funds are available for trading within the United States.
Currently, the ETF market offers futures-based Bitcoin products. However, speculation about the possible approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) could bring significant changes for Bitcoin and the broader crypto market.
The approval of a spot Bitcoin ETF could accelerate mainstream adoption of cryptocurrencies by giving tens of millions of new investors easy access to Bitcoin through retirement and brokerage accounts. This development would represent a significant step forward in integrating cryptocurrencies into mainstream finance.
Additionally, the SEC approval could bolster Bitcoin’s legitimacy, potentially dispelling any existing doubts about the cryptocurrency and positioning it as a credible asset class suitable for institutional investors and financial advisors.
Historical data from Canada and Brazil shows that the introduction of ETFs can have a positive impact on Bitcoin prices. Both countries saw a significant increase in Bitcoin prices following the launch of their respective ETFs in 2021. A similar trend could be expected in the United States with the launch of Bitcoin exchange-traded funds, potentially piquing investor enthusiasm and triggering bullish trends.
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Source : za.investing.com