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Home » Bloomberg Says Bitcoin ETFs a 100 Billion Market

Bloomberg Says Bitcoin ETFs a 100 Billion Market

Bloomberg Says Bitcoin ETFs a 100 Billion Market

Bitcoin ETFs will become a USD 100 billion market: Bloomberg. Money on Wall Street prepares for the imminent arrival of ETFs.

In Short

  • ETFs have helped put the bad experience of the FTX crash behind them.
  • Investors, young and old, have shown interest in bitcoin ETFs.

The entry into the game of financial giants such as BlackRock, Fidelity, and Invesco in spot bitcoin (BTC) exchange-traded funds (ETFs) leads one to believe that this sector has the potential to grow into a $100,000 billion behemoth So, it estimates the financial analysis firm, Bloomberg Intelligence.

According to Bloomberg, the wave of ETFs in the United States “offers a path to redemption” for bitcoiners and cryptocurrency believers, helping to put behind the bad experience of a year ago with the fall of the FTX exchange. However, he argues that some investor wariness remains, “cooling interest in all things cryptocurrency-related compared to the days of speculative euphoria,” even though BTC has rebounded in recent weeks.

In any case, the table is set for the U.S. Securities and Exchange Commission (SEC), possibly in mid-January or sooner, to give the green light to exchange-traded funds. So far, the regulatory agency has delayed its verdict, as it did last week with the applications of Global X and Franklin Templeton companies.

Companies looking for investment specialists

The interest in ETFs has caused companies to seek investment specialists. Galaxy Digital Holdings, which works with Invesco, placed a call earlier this month “to approximately 300 investment professionals about allocating to bitcoin as it approaches the debut of an ETF,” Bloomberg says.

Jeff Janson, a wealth advisor at investment firm Summit Wealth, believes that ETF approval is very close and that once access to the financial instrument becomes available, it will increase interest at the institutional level. The specialist maintains that it has also attracted the attention of both young and old investors.

The optimism surrounding Bitcoin spot ETFs is due to institutional investors’ limited access to futures-based ETFs. These ETFs have certain drawbacks, such as additional costs. Investors who want to invest directly in Bitcoin can do so through platforms such as Coinbase or Robinhood, but this means that fund managers lose control over their clients’ investments.

Easy Bitcoin trading

According to Chuck Cumello, president and CEO of Essex Financial Services, an ETF is a game changer. With a Bitcoin fund, “it would be simple and easy to conduct trades.

ETF tickers, stock exchange codes by which publicly traded assets get a name, also play a role. According to ETF analyst Eric Balchunas, tickers are aimed at “financial advisors and wealthy boomers” rather than retail trading, as this media outlet detailed.

“When tickers are more fun, that generally shows that they are targeting younger retail investors, which in this case probably won’t be a great audience for these funds.”

Eric Balchunas

Finally, an ETF will normalize a discredited asset class for some people. Complying with SEC regulations gives the funds “transparency and liquidity” and a favorable compliance opportunity for institutional counterparties, which could trigger new lending and derivatives transactions. According to the Bloomberg report, Wall Street money prepares for this scenario.

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