Bitcoin ETF approvals don't change reasons to own, not own cryptocurrency, expert says

financialpost.com:

TORONTO — Bitcoin is trading around levels not seen in nearly two years after a U.S. regulator approved 11 exchange-traded funds linked to the cryptocurrency, prompting calls that it’s a new era for digital money, but also for caution among investors.

In approving the ETFs by the likes of Blackrock Inc. and Franklin Templeton, United States Securities and Exchange Commission chair Gary Gensler said the move does not mean any approval or endorsement of the cryptocurrency.

“Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto,” he said in a statement.

The latest news does little to alter the equation on whether to invest in the cryptocurrency, said Sadiq Adatia, chief investment officer at BMO Global Asset Management.

“Nothing has changed from the reason of why you would want to own it, or why you wouldn’t want it.”

The option does make it easier and cheaper for U.S. investors to buy into bitcoin, helping drive more interest, he said. But Canadian investors have had the option of buying bitcoin ETFs since 2021.

The U.S. approvals will likely make it cheaper for Canadian investors as the competition drives down management fees, he said.

Already, Fidelity Investments Canada announced Thursday that it has reduced its fee from 0.95 per cent to 0.44 per cent, effective Friday, on its Fidelity Advantage bitcoin ETF. Meanwhile, Blackrock has come out of the gate with one of the cheapest options, available at 0.12 per cent for the first year.

Adatia said that while the ETF option is more straightforward, investors still need to be careful because it remains volatile.

Bitcoin swung up roughly five per cent to almost US$49,000 on Thursday on the first day of U.S.