Rise of Spot Bitcoin ETFs: U.S. Surges Past Canada, What’s Next?

  • The U.S. now dominates the global Bitcoin ETF market with 83.3% of the share.
  • Spot Bitcoin ETFs globally encapsulate 4% of the total Bitcoin supply.
  • Grayscale Bitcoin Trust leads the market but is challenged by notable net outflows.

The United States has surged ahead in the global spot Bitcoin ETF (Exchange-Traded Fund) market, according to a Coingecko report. Currently, the country has an 83.3% share, the highest globally. This shift underlines institutional and retail investors’ increasing interest in cryptocurrency investments.

Investors likewise embrace Bitcoin spot ETFs and other similar tools. A network of 11 countries comprising major economies and tax havens lay the root of the BTC exchange, where the trading is primarily focused on six key markets.

Significantly, the U.S. dominance is evident in the substantial $34.78 billion assets held across its 10 approved ETFs. This leap has been monumental, considering the total global market valuation is $41.74 billion. Canada remains a vital player despite slipping to second place, with its ETFs holding $3.09 billion. With the most diverse offering of 13 ETFs across several jurisdictions, Europe has a market share of 8.8%, translating to $3.67 billion in assets.

Moreover, with the global count of spot Bitcoin ETFs reaching 33, they now encapsulate approximately 839,323 BTC, representing 4% of the maximum Bitcoin supply.

Among these, the Grayscale Bitcoin Trust (GBTC) towers over others with $22.83 billion in assets, claiming over half of the market share. However, its dominance faces challenges due to ongoing net outflows, including significant share sales.

Additionally, the top 10 ETFs disproportionately command 92.7% of the global market, highlighting a concentration of assets within a few leading products. The U.S. boasts five top performers, while Europe and Canada contribute three and two, respectively.

The inception of spot Bitcoin ETFs dates back to 2020, with Germany’s ETC Group Physical Bitcoin leading the charge. The subsequent years saw a steady introduction of new ETFs, peaking in 2021 with 14 launches. The recent approvals in the U.S. in 2024 have injected fresh momentum into this market, potentially paving the way for further expansions and launches in other regions.

Thus, the dynamic ecosystem of exchange-traded funds of Bitcoin on spot markets indicates that the universe of cryptocurrency is gradually being recognized and adopted as an essential part of the standard investment portfolios.  With the U.S. at the helm, the market is set for further growth and diversification, attracting more participants worldwide.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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