Optimism builds for a US Bitcoin ETF this year


With the crypto market steadily showing signs of maturity, talk is growing that a Bitcoin ETF could be in the cards this year in the United States. Analysts remains highly optimistic for this possibility.

More so, after the new SEC chairman has taken charge.

One such voice is that of Eric Balchunas, an ETF analyst at Bloomberg Intelligence who thinks regulatory approval for a Bitcoin exchange traded fund will follow real soon in the heels of similar successful launches in Canada.

In fact, the next-door neighbor is already off to the races after debuting products like Ether ETFs and even an inverse ETF.

When asked why he though this year was different to the Bitcoin bull run in 2017 and 2018, he said:

“The institutional adoption of crypto is much greater. You have the intense growth of ‘default’ crypto products like (Grayscale’s Bitcoin Trust) which are not ideal for retail investors and the SEC (U.S. Securities and Exchange Commission) knows this.”

ETFs operate in a similar fashion to mutual funds, but can be bought and sold throughout the daily trading period on exchanges like stock.

So far, Canadian financial regulators have approved four Bitcoin ETFs. By comparison, the United States has yet to approve an ETF for any cryptocurrency despite multiple applications spanning a number of years.

The Canadian ETFs have done well, too. Within the first two days of trading, the country’s first crypto ETF from Purpose Investments, collected $420 million in assets under management. All four ETFs have garnered $2.3 billion in assets in just three months.

Balchunas, meanwhile, is of the opinion that Canada has a history of being six months to a year ahead of the United States when it comes to matters like these.

He capped it off by saying that there has been a shift this year, and his team is more optimistic of an approval than they have ever been.

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