Bitcoin & Ether Crypto "ETFs" Market Overview

ETF overview and what Upstream aims to do for the ETF market

By Anastasia Samaras

2024 has seen a surge in launches and regulatory approvals of exchange-traded funds (ETFs) for cryptocurrencies.

On January 10th, the U.S. Securities and Exchange Commission approved the first-ever U.S.-listed exchange-traded fund (ETF) designed to track the performance of bitcoin (BTC). The SEC has approved 11 applications,¹ including BlackRock, Ark Investments/21Shares, Bitwise, Fidelity, Grayscale, Invesco and VanEck.

On April 30th, 2024, Hong Kong launched six spot bitcoin and ether exchange-traded funds — becoming the first in Asia to offer retail investors the ability to trade the cryptocurrencies at spot prices. Three Chinese companies, China Asset Management, Bosera Asset Management, and Harvest Global Investments, issued the bitcoin ETFs on the Hong Kong exchange. Two weeks before the debut, the Securities and Futures Commission (SFC) of Hong Kong authorized the three ETF providers.²

On May 22, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first eight applications for spot ether ETFs, marking a significant milestone in the crypto, and greater blockchain community.³

On Thursday, June 20th, 2024, the Australian Stock Exchange “ASX,” launched its inaugural spot-bitcoin ETF in response to the growing global need for a simple approach to investing in cryptocurrencies.⁴

Bitcoin & Ether ETF Market Overview

Spot bitcoin ETFs saw inflows of $1.8 billion for the week ending June 4th, with $886 million in inflows — the second-highest amount in the funds’ history.⁵
Crypto ETFs in Hong Kong debuted softly, with far lower trading volume than anticipated. Bitcoin ETFs recorded $8.5 million in total trading activity, compared to $2.5 million for ether ETFs.⁶
Ethereum increased by more than 22%, recording one of its biggest daily recoveries in five years, compared to bitcoin’s 4% gain. This outstanding performance was sparked by the SEC’s clearance of multiple ether spot ETFs on May 23rd.⁷
The market has been significantly impacted by the approval of Ether spot ETFs. These exchange-traded funds give investors a fresh approach to invest in Ethereum, increasing its allure and stimulating demand. This situation is similar to what was seen earlier in the year when the SEC approved bitcoin spot ETFs, which helped to fuel bitcoin’s 56% year-to-date (YTD) performance.⁸

The approval of ether ETFs was met with positive reactions, unsurprising given the industry’s view of bitcoin ETFs as a major turning point for cryptocurrency and blockchain as a whole. The success of bitcoin ETFs likely paved the way for ether ETFs, making their approval an anticipated development. With ether ETFs gaining traction, more investors are considering diversifying their portfolios with exposure to bitcoin and ether ETFs.

Upstream making ETFs more accessible to International Investors

Upstream, a MERJ Exchange stock market and global trading app, is actively accepting applications for both ether and bitcoin ETFs to list.

It’s important to note that Upstream is not a cryptocurrency market and does not allow account funding via bitcoin, ether, or crypto trading. Upstream is a securities market and trading app powered by Ethereum smart-contract technology. Further, U.S. and Canadian investors may not deposit, buy, or sell securities on Upstream.

Just as Upstream works to make it easier for international investors to access U.S. and international equities, we are now working to bring ETFs to the masses as well.

This growth in crypto ETFs is highlighting the demand for investors to gain exposure to cryptocurrency and our goal is to make them more accessible globally.

For example, Hong Kong ETFs are a huge step forward, but they limit access to mainland Chinese investors.⁹ Similarly, regulatory barriers may prevent international players from accessing ETFs listed in the United States. Upstream is addressing these issues and helping international investors access ETFs outside of their home jurisdictions.

These industry milestones are significant to us as an Ethereum-powered market, and we look forward to meeting the demand from global investors who want to invest in spot bitcoin and ether ETFs from a streamlined account without directly holding the cryptocurrency. Upstream seeks to give international investors simplified access to securities from exchanges throughout the globe, much as ether ETFs want to give investors simplified access to cryptocurrency.

Parties interested in listing an ether or bitcoin ETF on Upstream can get started at: https://upstream.exchange/GetListed or reach the team at hello@upstream.exchange.

Sources

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