Pyth Network, a blockchain data provider, announced on February 20th that it has launched price feeds for 13 Bitcoin exchange-traded funds (ETFs). This move aims to provide developers building decentralized finance (DeFi) protocols with accurate price data for Bitcoin ETFs.
The approval of Bitcoin ETFs in the United States in January 2024 was a significant development for the crypto industry. It allowed mainstream investors, who were hesitant to directly own Bitcoin, to gain regulated exposure to the cryptocurrency.
Pyth Network’s latest initiative seeks to bridge the gap between traditional finance (TradFi) and DeFi. By providing real-time data on ETFs to DeFi developers, Pyth Network hopes to expand portfolio options, improve risk mitigation strategies, and potentially attract institutional capital on-chain to enhance liquidity.
Furthermore, Pyth Network’s integration will provide valuable insights into the DeFi ecosystem. The 13 Bitcoin ETF prices available on the platform include well-known funds such as ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, and WisdomTree Bitcoin Trust, among others. Additionally, Pyth Network also offers support for other ETFs, including (SPDR) Dow Jones Industrial Average ETF Trust, (DOW) Dow Jones Industrial Average, and (VOO) Vanguard S&P 500 ETF.
The launch of Bitcoin ETFs has already seen significant inflows, with $2.2 billion invested in one week from February 12th to 16th. This influx of funds surpasses the inflows received by any other ETF among the 3,400 available in the United States. Notably, BlackRock’s Bitcoin ETF recently reached a milestone of managing over 100,000 BTC since its launch in January.
Overall, Pyth Network’s introduction of price feeds for Bitcoin ETFs aims to provide developers with real-time data, bridging the gap between traditional finance and DeFi and potentially attracting more institutional capital to the cryptocurrency market.