Cryptoverse: As good as gold? Spot bitcoin ETFs aim to whip up US demand
economictimes.indiatimes.comcrypto rebel, is racing into the heart of the financial establishment with an exchange-traded fund that tracks its price. But will it strike gold?
The world's biggest cryptocurrency has leapt 28% in October, with investors betting U.S. regulators will give the green light for a spot bitcoin ETF and thereby unleash a new wave of demand.
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Well, it's hard to say, judging by the wide assortment of estimates from market players, ranging from $3 billion on its first day to $55 billion over five years.
«The analogy that I'm looking at is to gold,» said Dave Mazza, chief strategy officer at ETF provider Roundhill Investments, adding that the gold market had been transformed by the approval of spot ETFs.
He said he expected the first spot bitcoin ETFs on the scene to see a «wave of buying,» echoing the launch of the first ever gold ETF in 2006 in the U.S. or the bitcoin futures ETF in 2021.
Mainstream investment giants such as BlackRock and Fidelity, as well as crypto-focused firms like Grayscale, have filed applications for spot bitcoin ETFs. The U.S. Securities and Exchange Commission will be considering eight to 10 filings for new spot bitcoin products, its chair said on Thursday, without giving details of timing of decisions.
Ranged against the ETF optimists are those traditional investors long wary of crypto who say they won't be won over by new investment vehicles.
«Not a penny of my clients' money
