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Bitcoin (BTC<\/a>) institutional investment vehicles are seeing a major volume boost as excitement over possible United States regulatory changes takes hold.<\/p>\n Data from resources including Bloomberg showed Bitcoin exchange-traded funds (ETFs) and others nearing record weekly inflows.<\/p>\n Hints that the U.S. might soon allow a Bitcoin spot price-based ETF have not only impacted BTC price action<\/a> \u2014 the surrounding ecosystem has benefitted in kind.<\/p>\n In addition to exchanges and mining firms, embattled institutional investment options are also seeing a resurgence in demand.<\/p>\n As noted by Bloomberg senior ETF analyst Eric Balchunas, at least two household names saw \u201cnotable\u201d volume in the trading week through Oct. 27.<\/p>\n Among them was the ProShares Bitcoin Strategy ETF (BITO), the first futures-based ETF to get the green light in the U.S. in 2021.<\/p>\n \u201c$BITO traded $1.7b last week, 2nd biggest week since its wild WEEK ONE,\u201d Balchunas wrote in part of X commentary.<\/p>\n He noted that the stalwart Grayscale Bitcoin Trust (GBTC) fetched $800 million in volume, helping reduce its discount to the Bitcoin spot price to two-year lows.<\/p>\n \u201cThat’s $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there’s an audience,\u201d the X post concluded.<\/p>\n Notable: $BITO<\/a> traded $1.7b last week, 2nd biggest week since its wild WEEK ONE. $GBTC<\/a> did $800m. That’s $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there’s an audience pic.twitter.com\/6bFYtE0UoR<\/a><\/p>\n \u2014 Eric Balchunas (@EricBalchunas) October 28, 2023<\/a><\/p><\/blockquote>\n Others also picked up on the data, with William Clemente, co-founder of crypto research firm Reflexivity, describing<\/a> ETF trading as “back in full steam.”<\/p>\n As Cointelegraph reported, GBTC has seen a remarkable comeback<\/a> in recent months, even prior to BTC\/USD gaining 15% last week.<\/p>\n Related:\u00a0US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF<\/a><\/em><\/strong><\/p>\n Legal victories on the long road to gaining permission to convert GBTC into a spot ETF provided kindling, and Grayscale\u2019s product now trades with an implied share price, which is just 13.1% below the BTC spot price.<\/p>\n Per data<\/a> from monitoring resource CoinGlass, this is the lowest since November 2021, when Bitcoin itself was at all-time highs.<\/p>\n “The GBTC discount keeps narrowing,” popular Bitcoin and altcoin trader Mister Crypto meanwhile responded<\/a>. <\/p>\n “Maybe TradFi knows something we don’t know yet…”<\/p><\/blockquote>\n Despite this, investment management firm ARK Invest has reduced its GBTC holdings<\/a> in step with the share price gains.<\/p>\nBITO, GBTC trade $2.5 billion\u00a0<\/h2>\n
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Legacy finance could “know something we don’t yet”<\/h2>\n