Bitcoin investment products are experiencing a surge in activity, led by ProShares and Grayscale, as anticipation of potential regulatory changes in the United States stirs excitement. The data from various sources, including Bloomberg, highlights near-record weekly inflows into Bitcoin exchange-traded funds (ETFs) and related products.

Significant Volume and Impact On Bitcoin Products

ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF approved in the U.S. in 2021, saw substantial trading activity, with $1.7 billion traded during the week ending on October 27.

Grayscale Bitcoin Trust (GBTC) also witnessed robust trading volume, amounting to $800 million. This increased demand helped reduce the discount of GBTC to the Bitcoin spot price to its lowest level in two years.

Potential for Spot Bitcoin ETF

The anticipation of a potential Bitcoin spot price-based ETF in the U.S. has not only affected Bitcoin’s price but has also had a positive impact on the surrounding ecosystem. This suggests growing interest and demand for such an ETF.

Bloomberg senior ETF analyst Eric Balchunas noted this trend and highlighted the notable trading volumes.

Grayscale’s Narrowing Discount

Grayscale’s product, GBTC, now trades with an implied share price that is just 13.1% below the BTC spot price. This narrowing discount is the lowest it has been since November 2021, a time when BTC itself was reaching all-time highs.

This development has caught the attention of crypto market observers and traders, signaling increased investor confidence.

GBTC premium vs. asset holdings vs. Bitcoin/USD chart (screenshot). Source: CoinGlass

ARK Invest’s Adjustments

Despite Grayscale’s success, investment management firm ARK Invest has been reducing its GBTC holdings as the share price gains.

Interestingly, ARK Invest itself has plans to launch a BTC spot ETF. GBTC now constitutes 10.24% of ARK’s Next Generation Internet ETF, marking the first change since November 2022.

This surge in BTC investment products’ activity signifies the crypto market’s resilience and continued growth, with potential regulatory changes in the United States serving as a catalyst for renewed interest in digital assets.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.