SEC data: More funds allocate 15% of their assets under management to BTC

Source: Blockchain Knight

For a long time, the SEC (U.S. Securities and Exchange Commission) has been an obstacle to the approval of spot BTC ETFs. However, recent data shows that is changing, especially among Wall Street investors.

On January 3, Marty Party observed on % allocated to BTC.

This move is significant for BTC and the broader Crypto asset market. It shows that institutional investors are becoming increasingly bullish on BTC and are willing to allocate a larger portion of their portfolios to Crypto assets.

From a regulatory perspective, this may also indicate that the SEC is under pressure to approve a spot BTC ETF.

The fact that mutual funds are willing to adjust their prospectuses and allocate funds suggests that there is demand for BTC (and possibly other Crypto asset derivatives) among deep-pocketed institutional investors.

Party cited SEC data and pointed out that several funds have revised their prospectuses to invest 15% of their assets under management in BTC.

Advisors Preferred Trust notified regulators in a filing that it can now hold up to 15% of its spot BTC assets through Grayscale.

Arca Asset Management Trust also plans to invest 50% of its AUM in Grayscale, ProShares BTC ETF strategies and futures contracts.

Even so, the SEC has been reluctant to approve spot BTC ETFs on the grounds of market manipulation and investor protection.

However, growing interest from institutional investors and politicians may force the SEC to reconsider its position. Regulators may approve the first spot BTC ETF in January 2023.

This approval would be a major win for Crypto assets and BTC, potentially opening the market to more investors. Later, this decision will also help legitimize BTC as a mainstream asset class.

Until then, the trend of institutional investors pouring more money into BTC is likely to continue. However, the reaction of BTC price will be closely watched in the coming weeks.

Early on January 3, after reports that the SEC may not approve any spot BTC ETF in January, BTC prices immediately plummeted. Some analysts also blamed the flash crash on rising financing rates, which have recently risen to multi-month highs.