A new “need” seems to have exploded in the world of finance: ETFs on the spot price of Bitcoin.
The survey on Bitcoin spot ETFs
In reality, this need for crypto ETFs goes back a long way, at least since other more daring markets have already entered this world by issuing sui generis ETFs, such as Canada.
America’s neighbours have already shown not only that it can be done, but also that it is an instrument that has an excellent yield despite the global financial period not leaving much room for smiles.
According to market research carried out by the authoritative Nasdaq Inc. on behalf of the same basket there is appetite for this instrument despite the crypto market being bearish.
In fact, 72% of financial operators and advisors would like to invest in one or more spot ETF products based on Bitcoin.
More than 500 advisors were involved and 86% of them would like to increase their exposure with new investments in this type of product.
In spite of the worrying market phase, new and large funds are ready to be invested in the world of cryptocurrencies and specifically in Bitcoin.
This would give new impetus to the asset and to cryptocurrencies in general, correcting towards a more exciting phase.
A summary of previous episodes
The Securities Exchange Commission (SEC) has always put a brake on the creation of ETFs on Bitcoin.
There are two main reasons why the SEC has not opened up this financial product to date. The existence of a similar product but of a different construction and the lack of political will not to provide such an opening to the crypto world.
In the first case, there are already funds that replicate short-term futures prices, but these can be very different from the market value of crypto. Moreover, the management costs of the product are very high and therefore unwelcome.
As far as political will is concerned, there is perhaps a wait-and-see attitude. Political motives change, as do the actors who support them, so that while today everything may seem to be at a standstill, tomorrow the situation may unblock.
If this product came to light it would attract a huge flow of capital that would invigorate the market and reverse the situation. According to Nasdaq Inc., the arrival of large amounts of capital on the market would give the market a new boost.
BTC-linked exchange-traded funds in Canada reached a high of 69,052 BTC in assets, despite the volatility in the crypto space and the war in Ukraine.
Bitcoin holdings have definitely increased since the beginning of the year.
To give you an idea, according to Glassnode, the Purpose Bitcoin ETF has grown 19% since the start of the year, generating the largest increase in holdings ever.
There are only 2 million BTC left to be mined, and demand is growing. More and more countries, institutions and investors are interested in this world and this can only indirectly increase the value and strength of the asset.
Consequently, this will also have a positive impact on the ETFs that are so coveted by financial operators.