Wall Street is eating into market share: Bitcoin spot ETF trading volume has reached 25% of the world

Bitcoin spot ETF is rapidly disrupting the trading landscape of the crypto market. In just half a year, these products have quickly entered the mainstream and now account for 25% of global Bitcoin spot trading volume. A recent Animoca Brands Research report further points out that this ETF wave not only makes Bitcoin a new favorite for institutional asset allocation but may also become one of the paths to crypto mainstreaming.

Traditional Finance Invasion? ETF Captures Quarter of Bitcoin Spot Trading Volume

According to The Block data, as of yesterday, global Bitcoin spot ETFs have accounted for 25% of total Bitcoin spot trading volume, compared to 10% in October last year, showing an astonishing growth rate. This is primarily due to the product's attractiveness to institutional investors and allowing retail investors to invest in Bitcoin through familiar brokerage accounts, bypassing the learning curve of private key management and crypto wallets.

As one of the most successful financial product launches in history, multiple crypto ETFs have attracted billions of dollars in just one year. Advantages such as simpler tax reporting compared to direct cryptocurrency purchases, intuitive integration into traditional investment portfolios, and avoiding counterparty risk compared to CEX have made them the preferred Bitcoin investment tool in recent years.

The SEC's recent attitude towards ETF collateral will be a key regulatory focus, and the approval of more Altcoin ETFs will depend on the asset's maturity, liquidity, issuer experience, and whether it has a "Made in USA" label.

ETF Will Be the Financial Engine to Drive Crypto Mainstream

Crypto ETFs connect traditional finance and the crypto world, providing a more stable and secure investment path for crypto assets. From the popularity of Bitcoin spot ETFs to the stirring of Altcoin products, some view it as product innovation and financial order reconstruction, while others worry that traditional finance (TradFi) will gradually marginalize the crypto domain.

(Traditional Finance's Integration of Blockchain Dims Crypto: What Remains After Cypherpunk Moves to the Margins?)

However, as traditional investors gradually enter the market, crypto ETFs may still be one of the few compliant paths for cryptocurrencies to become "financially mainstream," though not the only solution.

As BTC repeatedly hits new highs, more and more listed companies are investing in the asset as a reserve strategy. However, when stock prices decouple from asset values, risks emerge. Asset management company VanEck warned that the market value of medical technology company Semler Scientific (SMLR) is now close to its held BTC value, and if it continues to deteriorate, it may severely dilute shareholder value and impact company operations.

Why is Semler's Market Value Low? Convertible Bonds, Liquidity, and Business Disputes Are the Main Reasons

Why can't Semler's valuation keep up with Bitcoin's rise? VanEck and Blockstream CEO Adam Back discussed in the comments section, and Sigel believes there are three main reasons:

1. Semler is a small-cap stock with low market liquidity

2. The only issued convertible bond trades at a low price (with an annual yield of 11%), indicating low investor confidence

3. The original medical device business performance is not satisfactory, dragging down the company's overall valuation

Adam Back added that Semler was involved in a medical equipment-related lawsuit that has now been settled, but the market has limited understanding of this, and the information gap may cause investor hesitation. He speculated that the company might have temporarily suspended capital raising and cryptocurrency buying plans, and although it has recently resumed actions, the market has not yet reflected its proactive efforts.

(Bitcoin Reserve Strategy Companies Are Hot: How Do Large-Scale Purchases Push Up Cryptocurrency Prices, and Become Market Unexploded Bombs?)

Topic Dividend No Longer: Are Bitcoin Reserve Strategies Entering a Trial Period?

For many companies, buying Bitcoin was originally a strategy to attract market attention and create asset leverage, but if the company's market value cannot reflect its held assets, this model will be difficult to sustain. Sigel emphasized:

When a company's market value is close to the value of its held crypto assets, any further equity dilution will harm existing shareholders rather than create benefits.

Semler is just the first, and this warning will also impact other listed companies choosing cryptocurrency as an asset allocation. VanEck's call will be a wake-up call for the market, and companies should perhaps consider whether investors are willing to buy in before investing.