Investors’ appetite for Bitcoin exchange-traded funds (ETFs) remains strong even as the US Securities and Exchange Commission (SEC) remains cautious as recent outflows hit the market.
Bitcoin ETF flows
SoSoValue reports that US-based Bitcoin ETFs saw significant outflows of $1.2 billion in just four days.
On Jan. 14, the 12 spot ETFs lost a combined $209.82 million, with BlackRock’s IBIT fund seeing the largest outflows of $219.48 million in assets. This is the fund’s second-largest negative flow since its launch a year ago, behind the record $332 million outflow it registered earlier in the year.
Meanwhile, Bitwise’s BITB was the second ETF product to record outflows, with $8.93 million exiting the fund.
Not all funds suffered losses. WisdomTree’s BTCW posted a net inflow of $10.24 million, while VanEck’s HODL and ARK 21Shares’ ARKB funds added $5.46 million and $2.89 million, respectively.
SEC delays Bitwise
The significant outflows come as the US Securities and Exchange Commission (SEC) extended its review of Bitwise’s proposal to launch a broad-based crypto index ETF. The new deadline for a decision has been moved to March 3.
SEC explained the reason for the delay. It allows for an in-depth review of this proposal.
This application was made in November of 2024. It has been published in December for comments from the public. Although no public comments have yet been received, the regulator is still cautious regarding the wider implications of these products.
The filing states:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The proposed ETF tracks the performance of 10 major cryptocurrencies based on market capitalization. These include Bitcoin, Ethereum, Solana, etc.
Osprey makes a move to convert funds
Osprey Funds, despite these current market conditions, has announced its plans to transform the Bitcoin trust it holds into an ETF.
Osprey, in a January 14th statement, intends to apply to the SEC as soon as possible to enable the conversion.
Osprey Bitcoin Trust, or OBTC for short, was founded in February of 2021. This trust provides Bitcoin exposure without the complications that come with direct ownership. The fund managed $186.65million in assets as of January 14.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
