The president of crypto clearing house CBOE Digital is reportedly optimistic that the greenlighting of the first Bitcoin (BTC) exchange-traded fund in the US will fuel institutional interest in the crypto markets.
According to a new report from Bloomberg, John Palmer anticipates new institutional investors, including pension and registered investment advisor (RIA)-based funds, will flock to Bitcoin assets once the U.S. Securities and Exchange Commission (SEC) approves the first spot ETF for the flagship cryptocurrency.
The financial vehicle will enable investors to invest in Bitcoin price movements without directly holding the digital asset.
Says Palmer, according to Bloomberg,
“Seeing that approval is going to pave the way for pension funds and RIA-based funds to be able invest in assets in a spot Bitcoin ETF where they may not be able to gain that access today in just a native, spot Bitcoin token.”
Palmer says Bitcoin derivative products will also expand with the potential approval of the spot ETF and institutions will increasingly rely on these derivatives to hedge risks.
BlackRock, VanEck, Valkyrie Investments and Fidelity are among the financial firms that are seeking regulatory nod to offer a spot Bitcoin ETF. The SEC has until January 10th to decide on the applications.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney