Amidst a surge in Bitcoin and Ethereum spot ETFs inflows in the US a new country has opened up its door for spot ETF trading.
Spot ETFs approved to counter inflation in Argentina
In an aim to modernise its financial system and adopt digital assets for economic growth, Argentina has announced that it is opening up its market for spot ETFs. The country’s financial regulator Comisión Nacional de Valores (CNV) approved the entry of US crypto-related exchange-traded funds (ETFs), giving new investment opportunities to the traders of the region.
This is being done through the CEDEAR programme which comes under Regulation No. 1030 which has made Bitcoin and Ethereum spot ETFs available for trading. Earlier, spot ETFs were prohibited as part of the Law No. 27440. With this move, Argentina has taken a major step towards integrating cryptocurrency with capital markets.
Announcing the spot ETFs availability in Argentina, CNV President, Roberto E. Silva said : “It is a pleasure to announce these first approvals, which constitute new investment options provided for in this very innovative law,”
The CNV also announced that they are authorising gold ETFs and the S&P 500 Index along with Chinese stock market indexes. This is in line with the broader efforts to promote access to passive management indices, digital assets and commodities in an attempt to diversify investment options for traders.
The spot ETF approval is in sync with President Javier Milei’s plan of stimulating the digital economy of Argentina to counter hyperinflation. The inflation has already dropped to below 200% from nearly 300% seen in April this year, making it the ideal time to introduce crypto ETFs which will modernise the financial system and adopt digital currency innovation.
It’s worth remembering that Argentina is one of the Latin American countries where Bitcoin transactions are allowed and BTC mining is publicly showcased by the Central Bank of Argentina (BCRA).
This Bitcoin mining installation shows the government’s support for digital currency and how the country is embracing digital assets. This is the first time a central bank is showcasing crypto mining.
Bitcoin and Ethereum Spot ETFs continue their net inflow surge
Argentina’s spot ETF adoption comes at a time when Bitcoin spot ETFs are continuing with their rising inflow trend. As of December 11, Bitcoin spot ETFs have recorded a total inflow of $223.1 million with Fidelity making up more than $121.9 million of it, followed by ARK Invest’s $52.7 million, Grayscale’s $20.1 million, Bitwise $12.2 million and VanEck $2.9 million.
Surprisingly, BlackRock’s IBIT didn’t register any net inflows while Valkyrie recorded a net outflow of $2.4 million.
Ethereum spot ETFs have also seen a surge in net inflow yesterday as it touched $101.6 million, of which BlackRock made up the most, around $73.7 million, followed by Grayscale ETH’s $13.4 million, Bitwise’s $8.2 million, VanEck’s $5.6 million and Franklin Templeton’s $2.9 million. However, Grayscale ETHE witnessed a net outflow of $2.3 million.
Fresh purchases of Ethereum spot ETFs worth over half a billion
The latest report by Arkham Intelligence shows that financial firms BlackRock and Fidelity have made more than $500 million in investments in Ethereum spot ETFs in the last 48 hours. Most of these transactions are done through the institutional crypto trading platform Coinbase Prime.
These purchases happened as the US SEC approved eight Ethereum spot ETFs, resulting in a significant surge in institutional activity. As of December 11, ETH is up 5.1% in the last 24 hours as it traded at $3830 with a trading volume of $39.3 billion.
BlackRock iShares Ethereum Trust ETF became the the largest issuer of Ethereum ETFs with a total inflow of $2.93 billion while Fidelity stood at $1.35 billion. December 10, marked the largest activity for both as they gained $372.4 million and $103.7 million in trading volumes, respectively.
This is the eighth consecutive day Ethereum spot ETFs are seeing positive inflows noted Arkham Intelligence in a post that said “PAST 48 HOURS: BLACKROCK AND FIDELITY BOUGHT OVER HALF A BILLION USD OF ETH.”
BlackRock has sought approval from the SEC for Ether spot ETFs trading which requires clearance from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC). The SEC is expected to take a decision regarding this matter by April next year.
Ever since BlackRock and Fidelity entered the ETF market they have constantly worked towards expanding their crypto portfolios which shows the growing trend of institutional activity in digital currencies, specially after spot ETFs got approved in early 2024.
Both firms’ actions underscore the increasing integration of digital assets into mainstream financial systems.
The current price movement of ETH is in with these trading activities which showcase the growing investor confidence and heightened market interest on the coin.