Despite the downturn in the cryptocurrency market, ETF issuers continue to move forward with new applications, confident that demand for digital asset funds remains strong.
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- ETF issuers such as Bitwise, ProShares, and 21Shares are moving forward with new filings, including plans for a leveraged Bitcoin/Ether ETF linked to Uniswap.
- The crypto ETF market is crowded, with over 140 existing funds and 10 new funds launched this year, with more expected to be launched.
- The plummeting price of Bitcoin has resulted in significant losses for ETF buyers, with over $1.5 billion being withdrawn from Ether ETFs and more than $3.5 billion from Bitcoin ETFs in the past three months.
This month, Bitwise Asset Management applied for a Uniswap-linked ETF, and ProShares sought approval for a leveraged Bitcoin and Ether ETF. 21Shares also resubmitted its Ondo and Sei-based fund plans, signaling progress in its efforts.
Todd Thorne, chief ETF strategist at Strategas, told Bloomberg that while companies like 21Shares and Bitwise remain focused on the long-term potential of cryptocurrencies, continued poor performance could impact future flows.
This comes amid a crowded market, with more than 140 crypto-focused US ETFs already trading, and 10 more set to launch this year. A BNB staking ETF is also coming soon.
Cryptocurrencies are under new pressure after October’s selloff, with Bitcoin plummeting and smaller tokens also falling. Investors are pulling back as liquidity tightens and risk appetite weakens.
According to data from Glassnode, buyers of the U.S. Spot Bitcoin ETF bought Bitcoin at around $84,100 per coin, with average losses, while the price is currently hovering near $66,000. This has led to significant outflows, with more than $1.5 billion pulled from Ether-focused ETFs and $3.5 billion from Bitcoin ETFs in recent months.
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