Will Bitcoin ETFs Join the Potential 500 ETFs Launched This Year?

Bloomberg Senior ETF Analyst Eric Balchunas believes that the United States market will likely end up with around 500 approved exchange-traded funds this year. These shared statistics echo the likelihood of getting at least one spot Bitcoin ETF as part of the projected number after Ben Johnson, a MorningStar Asset Manager shared a screenshot on the X app.

478 ETFs Launched in US Thus Far

According to Johnson, a massive number of ETF launches surfaced this year to the point that it was tagged the second-highest number of closures for any calendar year after 2020 where 274 was recorded. Specifically, there were 478 ETF products launched thus far with 208 closures. Also, there have been a total of 34 mutual-fund-to-ETF conversions.

Balchunas is very positive about reaching 500 ETFs launched by the end of the year and he sees the possibility of achieving this through the addition of at least 2 new ETFs per day. He posited that this will match or reflect a “direct byproduct of the $2b/day in cash ETFs Take in.” 

“All systems go right now,” the ETF analyst echoed.

We will likely end up around 500 ETFs launched in 2023 in the US, that's 2/day, which matches (and is a direct byproduct of) the $2b/day in cash ETFs take in. All systems go right now. https://t.co/vXoDSlfC2y

— Eric Balchunas (@EricBalchunas) December 6, 2023

It is worth noting that of all these launched ETFs, none is a spot Bitcoin ETF from the United States as the SEC is yet to greenlight the first of such offerings in the region. Top investment asset management firms including BlackRock, Invesco, Valkyrie, VanEck, and many others have filed their separate applications for Bitcoin ETF with the SEC, hoping to retrieve approval for a change.

Bitcoin ETF is Coming Soon

Rather than extend a welcoming hand to these applicants, the agency moved to postpone the decision on at least 7 filings. Since June when BlackRock began the ETF trend by submitting its spot Bitcoin ETF application to the SEC, the regulator has delayed its decision multiple times. 

The trend is now changing seeing the SEC’s Trading and Markets division is now engaging the potential ETF issuers in conversations, suggesting that the regulator may be actively working on pushing out a decision soonest. So far, Grayscale Investments and BlackRock have been reported to have met with the SEC officials, a move that is solidifying the likelihood of the impending approval.

All indications are pointing to the eventual approval of a Bitcoin ETF this time around. While anticipation is high, the decision is not likely to come this year since the next decision window is slated for January 5 to 10, 2024.