Bitcoin flooded with fresh money? – Despite the acceptance of a first Bitcoin ETF (BTC) in October 2022, the Securities and Exchange Commission (SEC) done now blockade against an ETF ” place “. However, such a restful version of real bitcoinsand not futures contracts, is the single dam holding back a huge wave ofinstitutional investments in the king of cryptos.
Despite $26 trillion in assets under management, they only dream of Bitcoin
For nearly 6 months, the policeman of the American financial markets, the Securities and Exchange Commissionlead a real blocking of any request for a spot ETF on Bitcoin. This type of exchange-traded fund (exchange traded funds) known as “spot” involve holding a underlying in the assets, so here, bitcoins.
The SEC has effectively granted so far only ETFs based on derivative products (futures, or futures contracts) of Bitcoin, which are simply indexed on the price of BTC, without the need to actually hold any.
However, a recent survey by the stock exchange NASDAQnear 500 financial advisorsshows that investors are very impatient to bet big on a Bitcoin spot ETF. According to this survey, a large 72% majority of these financial experts would be “willing to invest their clients’ funds” in cryptocurrency, if a spot ETF was accepted in the USA – there are already some in the rest of the world, especially in Canada since December 2021.
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Half of these experts are chomping at the bit on ETFs futures contracts BTC
In total, the surveyed investment advisers control the trifle of $26 trillion of assets on behalf of their (very) wealthy clients – is 13 times the size of everything the crypto asset market.
Those of them who have already bitten into Bitcoin in one way or another want some always more. Advisors who have already invested in cryptocurrencies are thus 86% predictable to increase their allowances over the next 12 months. Even more bullish (bullish), exactly 0.00% (none) of these experts intend to reduce their allowances: it is Institutional HODL!
Moreover, while desperately waiting for the SEC to decide to accept Bitcoin spot ETFs, these financial advisers are 50% to be satisfied (therefore to have already invested) in futures ETFs indexed to Bitcoin prices. And 28% more plan to start using them within the next 12 months, if not better.
With a average proportion advised to 6% investment in crypto, one imagines what it would look like on the scale of this gargantuan combination of institutional portfolios – almost a doubling of total valuation of the current crypto asset market. We also understand why so many requests for BTC spot ETFs try to submerge the SEC. Will the dyke holding back this windfall of institutional money soon to break up ? Anyway, the Grayscale’s Bitcoin investment fund (the GBTC) is doing everything to.
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