According to a report from digital asset management firm CoinShares, US-based Bitcoin Futures Exchange-Traded Funds failed to see much action in the week that ended on the 29th of October.
Per the report, the week saw a $288 million investment into digital asset investment products. However, only $53 million of the amount invested in Bitcoin futures exchange-traded funds (ETF).
Bitcoin Futures ETFs are vehicles that let investors get exposure to bitcoin without owning the underlying bitcoin. They invest in contracts that track bitcoin’s price
US SEC Approves Bitcoin Futures ETF
The United States Securities Exchange Commission (SEC) has severally rejected proposed applications to approve a Bitcoin ETF on the country’s exchanges, claiming that there are “high risks” involved.
The regulator was however more lenient with a Bitcoin Futures ETF, probably because they are built on future contracts.
In mid-October, the US SEC approved the launch of a Bitcoin Futures ETF known as the ProShares Bitcoin Strategy ETF (BITO) that is to be traded on the New York Stock Exchange market. Within a few days after the announcement, many US Investors invested massively into BITO.
As reported, digital asset managers such as Grayscale, ProShares, CoinShares, and others recorded a huge inflow that totaled $1.47 billion at the end of the announcement week.
The amount broke a new record as the largest inflow ever recorded by asset managers, with a significant margin between its closest figures.
Hoping that the long-awaited announcement would continue to drive in more investments in the weeks to come, asset managers were in for a disappointment as investments into Bitcoin Futures ETFs reduced drastically.
“The record-breaking previous week, following the US Securities and Exchange Commission permitting a Bitcoin futures ETF decision, was not repeated last week with only $53 million inflows from US-based ETFs,” the report stated.
The euphoria about US Bitcoin Futures ETFs ended as fast as it started.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!
Information found on this website is those of the writers quoted. It does not represent the opinions of Coinfomania on whether to buy, sell, or hold any investments. Readers must conduct their own research before making any investment decisions. Use the provided information at your own risk.