The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States could lead to North America capturing 99.5% of global crypto fund trading volume, according to a prediction by Bloomberg analyst Eric Balchunas.
In a recent Twitter post, Balchunas revealed that North America already accounts for 97.7% of worldwide crypto ETF trading volume. “If/when spot ETFs come out in the U.S., this will likely go to like 99.5%,” he stated.
There are currently several spot Bitcoin ETF applications under review by the Securities and Exchange Commission (SEC). The regulator’s decision on Ark Invest and 21Shares’ joint Bitcoin ETF application is expected by August 13, though an extension is considered likely.
Crypto Funds Dominate Top ETF Performance
The potential impact of U.S. spot crypto ETF approval is underscored by the current dominance of blockchain and crypto-focused funds among the top ETF performers this year.
According to Balchunas, the top 15 best-performing equity ETFs in 2023 will all have exposure to the crypto and blockchain space. The Valkyrie Bitcoin Miners ETF is the top performer, with returns of 227% year-to-date.
Other leading crypto ETFs include the Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) and the Bitwise Crypto Industry Innovators ETF (BITQ), which invest in crypto infrastructure and Web3 companies.
While optimism is building around a spot Bitcoin ETF approval this year, the SEC has remained cautious due to concerns about crypto market manipulation and investor protection. The final approval could unleash a wave of institutional investment, propelling Bitcoin and crypto firmly into the mainstream.
