This growing interest highlights the increasing mainstream acceptance of Bitcoin as an investment asset.
Canadian investors have taken a particular shine to these Bitcoin-linked ETFs, with nearly $2 billion invested across seven spot Bitcoin ETFs since their inception in 2021.
Leading the pack is the Purpose Bitcoin ETF, which holds the title of the largest with $819.1 million in assets under management.
In contrast, the United States has been cautious with spot Bitcoin ETFs. The US Securities and Exchange Commission (SEC) has so far approved only those ETFs that are linked to Bitcoin futures, like the ProShares Bitcoin Strategy ETF, which itself commands an impressive $1.2 billion in assets, Reuters reported.
Currently, the SEC is reviewing up to 10 applications for spot-based Bitcoin ETFs within the US market. Advocates for spot ETFs argue that the futures-based products offer a less precise and more expensive way to gain exposure to Bitcoin’s performance.
Despite the hesitation from the SEC, which has rejected all applications for spot Bitcoin ETFs citing concerns over potential market manipulation and the need for investor protection, other jurisdictions have welcomed them.
Germany was a pioneer in this space with the ETC Group Physical Bitcoin launching in June 2020, now boasting $802 million in assets, making it the second-largest spot Bitcoin ETF.
Europe hosts seven other Bitcoin ETFs in locales known for their favorable tax laws, including Jersey, the Cayman Islands, and Liechtenstein, demonstrating a diverse and geographically spread receptivity to Bitcoin-based financial products.
Even smaller markets like Brazil and Australia are participating, though with much smaller products.
CoinGecko speculates on the possibility of these ETFs eclipsing their Canadian and German counterparts, with estimates suggesting a demand of $1 billion or more on the first day alone.
This prediction underscores the intense market anticipation for a more direct and potentially more efficient way to invest in Bitcoin in the United States.