Hard SEC Data Indicates Funds Want to Put Up To 15% Of Their AUM Into Bitcoin


A long-standing obstacle to the approval of spot Bitcoin ETFs has been the U.S. Securities and Exchange Commission (SEC). Nevertheless, recent data indicates that a transition is taking place, particularly among members of Wall Street.

On January 3, Marty Party made an observation on X about how many conventional security investment funds are revising their prospectuses to include Bitcoin as an asset class up to 15% of their AUM.

This decision is significant for Bitcoin and the cryptocurrency sector as a whole. It shows that institutional investors are becoming more optimistic about Bitcoin and are prepared to put more money into the cryptocurrency.

It may also signal that the SEC is under pressure to authorize spot Bitcoin ETFs, which would be a regulatory development. Wealthy institutional investors may be interested in Bitcoin and other crypto derivatives since mutual funds are open to changing their prospectuses and allocating capital.

Party points out that other funds have revised their prospectuses to include Bitcoin investments of up to fifteen percent of their AUM, citing statistics from the SEC. A filing by Advisors Preferred Trust informed the regulator that Grayscale now allows it to keep up to 15% of its AUM in spot bitcoin.

Arca Asset Management Trust intends to invest as much as half of its AUM in futures contracts, the ProShares Bitcoin Strategy ETF, and Grayscale’s Spot Bitcoin.

U.S. regulators have been hesitant to greenlight spot Bitcoin ETFs because of worries about market manipulation and the safety of investors. The SEC may reevaluate its stance in light of the growing attention from lawmakers and institutional investors. January 2023 may see the first Bitcoin exchange-traded fund (ETF) approved by the regulator.

Also Read: CBOE Sees Institutional Investors Chasing After SPOT Bitcoin ETF Approval

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