According to John Palmer, the launch of regulated bitcoin exchange-traded funds will bring new institutional investors into the market, including pension funds and registered investment adviser funds.
Such funds have long been interested in digital assets, but they are stopped from investing in Bitcoin by the need to directly own cryptocurrencies, and with the help of ETFs, investors do not need to hold the asset.
Palmer also expects an influx of funds into cryptocurrency derivatives – institutional investors will evaluate the profitability of spot ETFs and will begin to be interested in derivative products to hedge risks.
Let us recall that applications for spot Bitcoin ETFs were submitted by BlackRock, VanEck, Valkyrie, and Fidelity. Analysts expect the US Securities and Exchange Commission (SEC) to approve spot Bitcoin ETFs by January 10th.
However, according to Eric Balchunas, there remains a small chance that the regulator will refuse to launch such funds.
Source: Bits
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