We are witnessing a revolution in the financial industry, with decentralized cryptocurrency being accepted as an investment asset by professional market participants and regulators, and a former US President putting the crypto agenda on the electoral platform.
One clear indication of this recognition is the growth of Bitcoin ownership by licensed exchange-traded funds. Today, their total supply exceeds 1 million coins or $68 billion. This is 5% of the total circulating supply of 19.7 million BTC.
We are witnessing a revolution in the financial industry, with decentralized cryptocurrency being accepted as an investment asset by market professionals and regulators, and a former US President putting the crypto agenda on the ballot.
One clear indication of this recognition is the growth of Bitcoin ownership by licensed exchange-traded funds. Today, their total supply exceeds 1 million coins or $68 billion. This is 5% of the total circulating supply of 19.7 million BTC.
Image source: StormGain infographic
Countries that have launched crypto funds include Canada, Germany, Switzerland, Brazil, China (Hong Kong), Australia and others. The United States is in the lead with 85% of shares, where spot ETFs that appeared this year attracted investments worth $13.7 billion. A third of this amount was provided by large institutional investors, whose volumes of assets under management start from $100 million.
Over the past three weeks, US funds have shown a return to net accumulation, gaining $2.1 billion in investments.
It is noteworthy that in the coming days the BlackRock fund will overtake Grayscale, which has been operating since 2013 and converted to a spot from a trust. For a number of reasons, Grayscale is experiencing an outflow of $17.7 billion this year. Its rate is weakening, which will further favorably affect the overall statistics of the ETF.
Analysts from Bernstein suggest that cryptocurrency funds will experience an influx of investments worth $100 billion in the next two years. Significant pressure from demand will lead to Bitcoin growth to $150 thousand next year.
The growing recognition of Bitcoin is reflected not only in the interest of professional market participants, but also in a change in the political agenda. The US Congress in May approved the FIT21 digital asset bill, which was opposed by Gary Gensler (SEC Chairman) and Joe Biden. However, it will be difficult for the president to veto it, since Trump chose support for crypto innovation as one of the points of his election campaign.
