Regardless of a bearish cryptocurrency market, ETF issuers proceed to push ahead with new filings, betting that demand for digital asset funds will stay robust.
Abstract
- ETF issuers like Bitwise, ProShares, and 21Shares are advancing with new filings, together with plans for Uniswap-linked and leveraged Bitcoin/Ether ETFs.
- The crypto ETF market is crowded, with over 140 present funds, 10 new launches this yr, and extra anticipated.
- Bitcoin’s sharp worth drop has led to vital losses for ETF patrons, with $1.5 billion withdrawn from Ether ETFs and over $3.5 billion from Bitcoin ETFs prior to now three months.
This month, Bitwise Asset Administration filed for a Uniswap-linked ETF, whereas ProShares sought approval for leveraged Bitcoin and Ether ETFs. 21Shares additionally resubmitted plans for funds primarily based on Ondo and Sei, signaling progress in its efforts.
Todd Sohn, chief ETF strategist at Strategas, advised Bloomberg that whereas corporations like 21Shares and Bitwise stay dedicated to the long-term potential of crypto, ongoing poor efficiency might have an effect on future flows.
This comes amid a crowded market, with over 140 crypto-focused US ETFs already buying and selling, and 10 extra launched this yr. A BNB staking ETF is anticipated quickly.
Cryptos have confronted renewed stress after October’s selloff, with Bitcoin falling sharply, dragging smaller tokens down. Traders are stepping again as liquidity tightens and threat urge for food wanes.
Knowledge from Glassnode reveals that patrons of U.S. spot-Bitcoin ETFs are sitting on common paper losses, having purchased Bitcoin at round $84,100 per coin, whereas the value now hovers close to $66,000. This has led to vital outflows, with over $1.5 billion withdrawn from Ether-focused ETFs and greater than $3.5 billion pulled from Bitcoin ETFs in current months.
