There have been net inflows into the US Spot Bitcoin ETFs Inflow exchange-traded fund (ETF) market for the past eight days running as of May 20, 2024. A similar development for other cryptocurrencies, such as Solana (SOL), may be on the horizon once spot Ethereum ETFs are approved, coinciding with this encouraging trend.
Bitcoin ETFs Attract $153M
According to SoSo Value’s data, Spot Bitcoin ETFs Inflow brought in $153.91 million on Wednesday. Ninety-two million dollars were poured into the iShares Bitcoin Trust (IBIT), a BlackRock product. Next came the $75 million influx from Fidelity Digital Assets’ Wise Origin Bitcoin ETF, followed by $3 million from Ark Invest and 21Shares Bitcoin ETF.
On Wednesday, however, $16 million left the market through Grayscale’s Bitcoin Investment Trust (GBTC), the market leader in the industry. There were no net inflows or outflows for seven other spot Bitcoin ETFs from VanEck, Bitwise, and others.
There may have been a slight setback, but spot Bitcoin ETFs still show an upward trend. The fact that these funds have received net inflows of $13.33 billion since their introduction in January 2024 demonstrates investors’ trust in this new asset class. The market is bustling, as the total trading volume for the spot Bitcoin ETFs is more than $267 billion.
FIT21 Act Spurs Spot Bitcoin ETFs
The recent passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the US House of Representatives and the upbeat atmosphere surrounding Spot Bitcoin ETFs Inflow co-occur. This Republican-led initiative aims to create a regulatory framework for digital assets by giving the CFTC greater power to regulate them as “digital commodities.”
There has been criticism from both sides of the aisle despite the law taking a big step toward crypto regulation. The current version of FIT21 needs more modification, according to Rep. Nancy Pelosi (D-CA), who is concerned that consumer protection provisions are lacking. Chair Gary Gensler of the Securities and Exchange Commission (SEC) concurred. I am saying that the measure endangers those who invest in digital assets.
The US cryptocurrency market is now waiting with bated breath for the possible green light of spot Ether ETFs. The SEC allegedly asked exchanges to revise and refile 19b-4 documents earlier this week, an action commonly viewed as a prelude to clearance. While Nasdaq submitted the modified form for BlackRock’s offering, Cboe BZX revised five spot Ether ETFs.
Solana’s ETF Prospects
Solana may be the next cryptocurrency to have a spot ETF, according to BKCM CEO Brian Kelly. Details and timing are still in the air, but this potential demonstrates Solana’s increasing market dominance. A spot Bitcoin ETF’s approval has historically resulted in a 12% weekly spike in the ETH/BTC trading pair. Matrixport co-founder Daniel Yan speculates that Solana would reap comparable benefits upon approving a spot Ethereum ETF.
Due to its quick and inexpensive transactions, Solana is attracting many investors. A spot ETF might increase its visibility and broad appeal. Consistent investment in Bitcoin exchange-traded funds (ETFs). The FIT21 bill’s passage and the possibility of approval for Ether ETFs all point to a bright future for cryptocurrencies.
