The post Ark Invest, 21Shares could jump to bitcoin ETF assets lead: Analysts appeared on BitcoinEthereumNews.com.

If US regulators approve spot bitcoin ETFs, Ark Invest and 21Shares are well-positioned to rapidly accumulate assets, according to Bloomberg Intelligence analysts. The Grayscale Bitcoin Trust (GBTC) could also have a leg up — if allowed to launch at the same time — given its current asset base of roughly $23 billion assets under management, according to Bloomberg Intelligence’s James Seyffart and Eric Balchunas. The US Securities and Exchange Commission is set to rule on the Ark 21Shares Bitcoin ETF (ARKB) by Jan. 10, and industry watchers expect the regulator could greenlight a bunch of other similar offerings at that time.  The regulator could also choose to deny these applications.    Segment observers have said a bitcoin ETF, or multiple, could be one of the biggest ETF launches of all-time. A fight for assets between traditional finance giants such as BlackRock, Fidelity and Invesco — not to mention more specialized firms like Grayscale, VanEck, Bitwise and WisdomTree — is set to be fierce. Flows and volumes are “crucial” to marketing an ETF, Seyffart and Balchunas said in a Wednesday research note. Capital flowing into a fund gives the appearance of success and interest, they added, which can spur other traders and investors to follow.  With that in mind, the analysts argued that Ark Invest might choose to sell its current positions in the Grayscale Bitcoin Trust (GBTC) and port those assets over to ARKB. The discount to net asset value at which GBTC’s shares trade has recently shrunk to a two-year low, and Grayscale executives have said such a discount would essentially disappear if it is allowed to convert to an ETF.  The Ark Next Generation Internet ETF (ARKW) currently holds nearly 4.3 million shares of GBTC — worth roughly $133 million. “This influx of flows and volumes might come in…

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Filed under: News - @ December 1, 2023 12:22 am