- DRW revealed that it owns spot exchange-traded funds worth over $195 million in Bitcoin and Ethereum, with the majority of that amount allocated to a $150 million investment in the Grayscale Ethereum Trust.
- A growing institutional appetite for ETH ETFs, which have experienced comparatively less interest since inception than bitcoin funds, may be indicated by DRW’s entry into the ETH ETF market.
In its most recent Form 13F filing with the U.S. Securities and Exchange Commission, Chicago-based high-frequency trading firm DRW Holdings revealed that it now holds at least $195 million worth of cryptocurrency exchange-traded funds, including over $150 million in probably its initial introduction to the market was the Grayscale Ethereum Trust.
About six months after spot bitcoin ETFs went live, in July, the SEC permitted the first launch of spot ether ETFs to start trading. Additionally, Ethereum-based funds have not attracted as much interest as spot bitcoin ETFs, despite spot bitcoin ETFs having generated billions of dollars in net inflows from a combination of institutional and retail traders.
DRW’s entry into the ETH ETF market may signal growing institutional interest in the second-largest cryptocurrency by market value. The company owns more ETH ETFs than ETFs by a factor of more than three; in fact, the Grayscale ETHE vehicle is its third-largest position, after a gold trust and a fund that tracks the S&P 500.
Additionally, the firm’s exposure to Bitcoin ETFs is dispersed across fewer funds. It owns bitcoin-related products from Bitwise, Ark, 21Shares, Fidelity, BlackRock, and Proshares, the last of which is its biggest position.
Since at least 2018, DRW has been more actively involved in the cryptocurrency sector. For example, several bitcoin ETFs have turned to its market-making division, Cumberland, as a source of liquidity. Additionally, Cumberland recently received approval from the New York State Department of Financial Services to apply for a BitLicense.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
