Forex in this article
• A new generation of crypto investment products is born
• US Financial Advisors Demand Bitcoin Spot ETFs
• So far, the stock exchange supervisory authority has obstructed
Crypto spot ETF demand is high
In October of last year, the cryptocurrency industry experienced something of a revolution when the first Bitcoin futures ETF began trading in the United States. Since then, as BTC-ECHO reports, calls for the introduction of spot ETFs by US financial advisors have grown louder. These funds would replicate a respective cryptocurrency, such as Bitcoin, as the underlying asset, with fund managers actually having to deposit the cryptocurrency as collateral, unlike futures ETFs.
A strong indicator of this rush is the recently released Nasdaq survey. The results show that out of a total of 500 financial advisors surveyed, 72% said their preferred method of investing in cryptocurrencies would be through a US-based spot ETF. According to Bloomberg analyst Eric Balchunas, the total volume of assets under management by respondents is $26 trillion. Financial advisors also said in the survey that the “optimal crypto share” in the overall portfolio would be around 6%.
So far it still fails because of stock exchange supervisory authority
However, a serious obstacle still stands in the way of the investment product so demanded by the financial sector. The U.S. Securities and Exchange Commission has so far either denied all applications for Bitcoin spot ETF approval or postponed the decision. However, as Bloomberg ETF analysts Eric Balchunas and James Seyffart explain, a proposal to change the agency’s rules could pave the way for approval of a bitcoin spot ETF in mid-2023. According to Balchunas, it is possible that crypto platforms will be regulated by the SEC, provided the SEC accepts the change to the definition of “exchange” proposed in January.
According to BTC-ECHO, the rule change would amend the Exchange Act to include platforms that “offer any type of securities for trading.” This would then also include cryptocurrencies. It would also lead to a more positive attitude of the regulator towards this type of investment. “Once crypto exchanges are compliant, the SEC’s primary reason for previous Bitcoin spot ETF denials would be obsolete, making approval likely,” the analysts said.
Balchunas and Seyffart believe that the decision to change the definition, which could come between November 2022 and May 2023, would pave the way for the SEC to approve crypto spot ETFs. This would then also include Bitcoin-related ETFs.
Thomas Weschle / Editor finanzen.net
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