When a BTC spot ETF is approved, institutional money floods into Bitcoin


When a BTC spot ETF is approved, institutional money floods into Bitcoin

When a BTC spot ETF is approved, institutional money floods into Bitcoin

Has new money poured into Bitcoin? The Securities and Exchange Commission (SEC) did not yet impose a blockage on an ETF in "place" despite the acceptance of the first Bitcoin ETF (BTC) in October 2022. The only thing stopping a massive surge of institutional investments in the king of cryptocurrencies is the tranquil form of genuine bitcoins, not futures contracts.

They solely think about Bitcoin despite having $26 trillion in assets under management

The Securities and Exchange Commission, the watchdog of the American financial markets, has effectively blocked all requests for a spot ETF on Bitcoin for almost six months. The "spot" exchange-traded fund (also known as an exchange-traded fund) involves holding an underlying asset, in this case, bitcoins.

The SEC has effectively only approved ETFs based on Bitcoin derivative products (futures, or futures contracts), which are merely indexed on the price of BTC and do not require real ownership of any.

However, a recent study of up to 500 financial advisors by the stock exchange NASDAQ reveals that investors are eager to place sizable wagers on a Bitcoin spot ETF. If a spot ETF were to be accepted in the USA—there are currently ones in the rest of the globe, especially in Canada since December 2021—a substantial 72 percent majority of these financial professionals would be "prepared to invest their clients' assets" in cryptocurrencies.

Half of these professionals are eager to learn more regarding ETF futures contracts BTC

The number of assets that the surveyed investment advisors together manage for their (very) rich customers totals $26 trillion, which is 13 times the value of the whole crypto asset market.

The people who have already used Bitcoin in some capacity are continuously looking for more. As a result, 86 percent likely that advisors who have already made cryptocurrency investments will increase their allocations over the next year. More encouraging (encouraging), precisely 0.00% (none) of these specialists plan to lower their allowances: it's institutional HODL!

Furthermore, these financial advisors are 50% pleased (and thus have invested) in futures ETFs pegged to Bitcoin values while eagerly waiting for the SEC to approve Bitcoin spot ETFs. Furthermore, 28% more people plan to start using them within the next year, if not sooner.

One can imagine what it would look like on the scale of this massive combination of institutional portfolios—nearly a doubling of the current crypto asset market's overall valuation—with an average proportion advised to invest in cryptocurrencies of 6%. We now comprehend why the SEC is the target of so many petitions for Bitcoin spot ETFs. Will the dam that is keeping this influx of institutional funds in check eventually collapse? The GBTC, a fund managed by Grayscale, makes every effort to invest in Bitcoin.

Institutions want to make significant Bitcoin investments! You can finish it before they arrive, which is an advantage. What are you holding off boarding the train for? Sign up as soon as possible on the major cryptocurrency exchange Binance (affiliate link).