Bitcoin ETF Race Boosts Crypto Investment Products to $33.4 Billion AUM in June

Digital asset investment products have seen their total assets under management surge 9.05% over June to reach $33.4 billion, after rising around 69.5% year-to-date. Products offering exposure to Bitcoin saw a notable 12.4% rise in assets under management to $24.4 billion.

The month of June proved to be one filled with notable developments in the cryptocurrency space, with a race to list a spot Bitcoin exchange-traded fund (ETF) being kicked off by a filing from BlackRock. The world’s largest asset manager’s filing was followed by other applications, including from financial giants like Invesco and WisdomTree.

According to CCData’s latest Digital Asset Management Review report, the seemingly ongoing spot Bitcoin ETF race has boosted Bitcoin-focused investment products to the point they’re capturing a 73.1% market share of the space, while Ethereum-based products saw a 2.68% increase in assets under management to have a 23.1% market share.

Source: CCData

The report adds that the trading volume for Grayscale’s Bitcoin Trust (GBTC) product increased from $35.6 million in September 2022 to $45 million in June, dominating 74% of the total trust products market, up from 50.9% in September. 

Meanwhile, Grayscale’s Ethereum Trust (ETHE) saw its volume drop from $31 million to $14.4 million in June, with its market share among trust products falling from 44.4% to 23.6%.

This trend reflects the rising positive sentiment towards Bitcoin and its products, as well as the renewed perception of Bitcoin as a safe haven asset. Another winner in June was 3iQ CoinShares, which recorded a 91% rise in assets under management to $150 million.

It was followed by ProShares, which recorded a 12.3% increase in assets under management to $1.12 billion. These rises come at a time in which financial behemoths that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency 

As noted by CoinShares Chief Strategy Officer, Meltem Demirors, at least eight financial powerhouses, which include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America are “actively working to provide access to Bitcoin and more.”

Notably, data has shown that institutional interest in crypto has been growing. The ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures fund, has seen a dramatic uptick in capital inflows on June 26, seeing the most significant weekly inflow in a year at $65.3 million, pushing its assets above $1 billion.

With a fee of 0.95%, the fund has gained 59.6% since 2023 began, according to ProShares. Interest in Bitcoin derivatives surged after BlackRock filed for its spot Bitcoin ETF on June 15, with data showing Bitcoin futures open interest surged around 30% since then.

Featured image via Pixabay.