Hunter Horsley, co-founder and CEO of asset manager Bitwise, recently Announced a notable entry from Bitwise spot bitcoin ETF Trust (BITB).
With an additional influx of $68 million and subsequent bitcoin purchases, Horsley reported, the Bitwise Spot ETF has risen to the top spot of exchange-traded funds (ETFs) launched in 2023. This achievement marks an entry of 370 million dollars in four days at BITB.
Nate Geraci, President of the ETF Store, noted The rise of BITB. With assets under management (AUM) reaching $355 million, BITB ranks in the top 25 of the more than 540 ETFs launched last year by AUM, according to Geraci.
Just to put things in perspective…
More than 540 ETFs launched in 2023.
BITB's $355 million AUM (with btc price falling) puts it in the top 25 of those ETFs using *current* AUM.
In 4 days. https://t.co/lC2ombrjAj
– Nate Geraci (@NateGeraci) January 18, 2024
The Ripple Effect of SEC Approval on Spot bitcoin ETFs
The recent approval of bitcoin spot ETFs by the United States Securities and Exchange Commission (SEC) has been a significant development for the industry.
According to Bloomberg ETF analyst Eric Balchunas on their debut day, these spot ETFs overcome Another 500 ETFs launched in 2023, generating total volume of $1.8 billion, compared to $450 million for others.
The market response to these new spot ETFs has also been positive. James Seyffart, Bloomberg Intelligence Analyst revealed that the cumulative trading volume for the newly launched spot bitcoin ETF products reached the $10 billion mark in three days.
In the range of recently introduced spot ETFs, BITB stands out, btc.sproutfinance.io/” target=”_blank” rel=”noopener nofollow”>ensuring third position in assets under management (AUM). It is followed by BlackRock's iShares bitcoin Trust (IBIT), which leads with an AUM exceeding $1 billion, and Fidelity's FBTC, which takes second place with an AUM exceeding $800 million.
ethereum Could Overtake bitcoin: Bitwise CIO
While Bitwise's involvement in bitcoin is evident through BITB, the company's CIO Matt Hougan recently shared information about another major cryptocurrency: ethereum (eth). Hougan outlines five reasons why ethereum could be a more “attractive” investment than bitcoin.
Leading ethereum's role as a global computing platform, he envisions a future where ethereum “redefines the financial and creative sectors.” Hougan emphasizes ethereum's unique economic model, where the value of eth increases with the use of the network.
This model ensures that “increased activity on the network directly benefits eth holders,” similar to traditional financial mechanisms such as buybacks and dividends. Additionally, according to Hougan, ethereum's ecosystem, populated by a wide range of applications and developers, makes it a “hotbed for the next big cryptographic breakthroughs.”
Adding to ethereum's appeal is its “growing acceptance and integration into mainstream business operations.” Hougan cites examples such as Nike's significant revenue from digital products on ethereum, PayPal's payment solutions, and Goldman Sachs' bonus deals on the platform.
Lastly, Bitwise's CIO sees ethereum as the likely home for real-world tokenized assets in the crypto ecosystem, highlighting its potential to “revolutionize asset tokenization.”
Featured image from Unsplash, chart from TradingView
