Bitcoin

More than 40 digital currency ETFs await US regulatory approval

Fund managers appear to be scrambling to match demand from investors as major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) teeter around record price levels. According to a Bloomberg Terminal screenshot taken by Bloomberg Intelligence analyst James Seyffart, over 40 cryptocurrency exchange-traded funds, or ETFs, are now awaiting listing in the United States. 

The source indicated that four have already been approved by the Securities Exchange Commission, the most notable of which is the Ark 21Shares Bitcoin ETF, created in a joint effort by 21 Shares and ARK Invest.

The latest fund applications came from AXS Investments on Oct. 27. They are the AXS Bitcoin Strategy ETF and the AXS Short Bitcoin Strategy ETF. The vast majority of funds pending listing seek to purchase BTC directly, or their futures and derivatives. A few funds operate on a mixed strategy, only putting a portion of their assets in BTC while deploying the rest in U.S.-based equities or blockchain stocks. However, there are also three funds focusing on matching the performance of ETH. They are the VanEck Ethereum Trust, the Wisdomtree Ethereum Trust, and the Kryptcoin Ethereum Trust. All three were filed earlier this year and are currently awaiting approval.

It took eight years for the SEC to authorize such financial products in the U.S., and they have already gained significant popularity among investors. Earlier this month, the Proshares Bitcoin Strategy ETF became the first crypto ETF to list in the country. At the time of publication, the fund’s total assets under management have surpassed $2 billion.

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