If you have kept yourself in the loop about the
If you have kept yourself in the loop about the crypto world, you would know how numerous Bitcoin ETF applications have landed on the US SEC’s desk in vain. Now, a new survey conducted Bitwise Asset Management tells us that 58% of all financial investors would be willing to put their money into a Bitcoin ETF. Interestingly, Bitwise itself has filed an application for the permit to launch a Bitcoin ETF with the SEC or Securities and Exchange Commission earlier this month, with the registration form being published on 10th January, 2019.
The SEC has been withholding its stamp of approval on the Bitcoin ETF applications for a really long time now and a large number of people still wonder if the market even needs a crypto ETF (exchange traded fund).
People question if there is really any rationale to combining a modern fintech solution like cryptocurrencies with an established financial instrument like ETF.
The survey questioned one hundred and fifty participants, with each and every participants having worked in the capacity of a financial advisor.
They were even asked what would induce them to put their money on Bitcoin, and they said that having a more conducive regulatory environment would make them invest in the crypto coin. 35% of them were willing to invest in Bitcoin only, and only if a Bitcoin ETF was launched.
The surveyors pointed out that when the first gold ETF was launched, many had felt it was an unnecessary introduction.
However, when it was finally put into the market, it received a very enthusiastic response from investors, who invested heavily, leading to massive volumes of trade.
Explaining the need for Bitcoin ETFs in today’s world, the Bitwise report reads:
“The answer is that ETFs are a well-understood construct that is plug-and-play with the existing software platforms, paperwork, processes, and workflows that professional investors and firms use. At a 0.25%-10% allocation, crypto isn’t a deep focus of most investors, and most aren’t going to reinvent the wheel just to access it. They need it to be easy.”
The report also notes that the SEC was not necessarily against Bitcoin ETFs despite the long time it had been sitting on the applications. The current government shutdown had also contributed to the delay, the report noted.
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