Interest in Bitcoin ETFs persists despite SEC delays and significant $1.2B outflows

Traders’ urge for food for Bitcoin exchange-traded funds (ETFs) stays sturdy even because the US Securities and Change Fee (SEC) stays cautious as current outflows hit the market.

Bitcoin ETF flows

In keeping with SoSoValue knowledge, the US-based spot Bitcoin ETFs skilled vital outflows over the previous 4 days, totaling $1.2 billion.

On Jan. 14, the 12 spot ETFs misplaced a mixed $209.82 million, with BlackRock’s IBIT fund seeing the biggest outflows of $219.48 million in property. That is the fund’s second-largest detrimental stream since its launch a 12 months in the past, behind the file $332 million outflow it registered earlier within the 12 months.

In the meantime, Bitwise’s BITB was the second ETF product to file outflows, with $8.93 million exiting the fund.

Nevertheless, not all funds skilled losses. WisdomTree’s BTCW posted a web influx of $10.24 million, whereas VanEck’s HODL and ARK 21Shares’ ARKB funds added $5.46 million and $2.89 million, respectively.

SEC delays Bitwise

The numerous outflows come because the US Securities and Change Fee (SEC) prolonged its overview of Bitwise’s proposal to launch a broad-based crypto index ETF. A brand new choice deadline has been set for March 3.

The SEC defined that the delay permits for a extra detailed overview of the proposal, which might mark a major milestone within the business.

The applying was submitted in November 2024 and revealed for public remark in December. Whereas no feedback have been recorded but, the regulator stays cautious in regards to the broader implications of such merchandise.

In keeping with the submitting:

“The Fee finds it acceptable to designate an extended interval inside which to take motion on the proposed rule change in order that it has adequate time to think about the proposed rule change and the problems raised therein.”

The proposed ETF would monitor the efficiency of the ten largest cryptocurrencies by market capitalization, together with Bitcoin, Ethereum, and Solana.

Osprey strikes to transform fund

Regardless of these prevailing market conditions, Osprey Funds has introduced plans to transition its Bitcoin belief into an ETF.

In keeping with a Jan. 14 assertion, Osprey intends to file with the SEC quickly to facilitate the conversion.

Osprey Bitcoin Belief (OBTC) was launched in February 2021 and gives traders with Bitcoin publicity whereas eliminating the complexities of direct possession. As of Jan. 14, the fund manages $186.65 million in property.

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