Analysts: Ark Invest and 21Shares could jump to the top spot among BTC ETF assets

Author: Ben Strack, blockworks Translation: Shanoba, Golden Finance

Bloomberg professionals say Ark may consider selling its $130 million GBTC position to fund its proposed BTC ETF

Bloomberg analysts said that if US regulators approve spot BTC ETFs, Ark Invest and 21Shares will be well-positioned to quickly accumulate assets. Given that the Grayscale BTC Trust (GBTC) currently has approximately $23 billion in assets under management, a Grayscale BTC Trust (GBTC) may also have an advantage if it is allowed to launch at the same time.

The U.S. Securities and Exchange Commission will rule on the Ark 21Shares BTC ETF (ARKB) on January 10, and industry observers expect regulators to approve a range of other similar products by then. Regulators may also choose to reject these applications.

Segment watchers say the BTC ETF or multi-BTC ETF could be one of the largest ETF offerings ever. **The battle for assets between traditional financial giants such as BlackRock, Fidelity, and Invesco will be fierce, not to mention more specialized companies such as Grayscale, VanEck, Bitwise, and WisdomTree.

Seyffart and Balchunas said in a research note on Wednesday that traffic and trading volume are “critical” to the marketing of ETFs. They added that capital inflow funds give the impression of success and interest, which can spur other traders and investors to follow suit. With this in mind, analysts believe that Ark Invest may choose to sell its current position in the Grayscale BTC Trust Fund (GBTC) and transfer those assets to ARKB.

The NAV discount for GBTC stock trading has recently shrunk to a two-year low, and Grayscale executives said that this discount would essentially disappear if conversion to an ETF was allowed. The Ark Next Generation Internet ETF (ARKW) currently holds nearly 4.3 million shares of GBTC, worth approximately $133 million. This influx of traffic and volume is likely to come in large numbers, which could be even better for ARKB, as it will help make the ETF look like it’s attracting sustained interest in the first week.

Given the size of its biggest competitors, the capital injection is especially important. Ark Invest’s U.S. ETFs manage approximately $13 billion in assets, while BlackRock ETFs (including those under its iShares brand) manage approximately $2.4 trillion in assets.

Dave Nadig, a financial futurist at data firm VettaFi, previously said that capital market depth and the number of institutions would play a key role, noting that BlackRock’s institutional relationships could help its BTC trust quickly become an asset leader.

Michael Nasser, co-founder of digital currency brokerage firm Satstreet, said in an X post: "[BlackRock and] Fidelity will be adding their BTC ETFs to their modeled/managed funds… It is possible to gain an immediate lead. ”

When other companies launch BTC ETFs, GBTC will also have an advantage if it is allowed to convert to an ETF. The trust, which was launched in 2013 and has qualifying stock trading on OTC Markets Group, will become an ETF subject to regulatory approval, executives said.

Source: Golden Finance