A new category of investors will gain from spot Bitcoin exchange-traded funds (ETFs) if the Securities and Exchange Commission (SEC) authorizes them shortly, according to a recent Coinbase research of Coinbase executives.
Registered investment advisors and retirement funds are among the new beneficiaries. “The opportunity is potentially much greater than just enabling new capital to access the crypto market,” Coinbase noted in a press release.
The SEC is now reviewing 12 applications for a spot Bitcoin ETF, and the markets regulator is scheduled to deliver a decision as soon as November 17.
ETFs, according to David Duong, one of Coinbase executives of Institutional Research, “will ease the restrictions for large money managers and institutions to buy and hold Bitcoin, which will improve liquidity and price discovery for all market participants.”
Meanwhile, given that the US banking and Treasury bond markets are becoming increasingly “vulnerable,” Bitcoin has emerged as a more appealing asset in 2024, according to the analysis. In anticipation of the permits, the price of the world’s largest cryptocurrency has already risen beyond $37,000 this week.
According to Coinbase research, the spot Bitcoin ETFs may also “open the door to new products,” such as increasing the array of crypto choices accessible to retail and institutional investors.
However, not everyone believes that the next spot in Bitcoin ETF approvals would bring in a lot of money. According to David Bailey, CMO of Azteco, the inventor of the world’s first Bitcoin gift card, spot Bitcoin ETFs may further perpetuate the idea that Bitcoin is only a financial asset.
Bailey told TheStreet Crypto that Bitcoin was built for electronic payments and that its actual worth will be seen only when ordinary people use it for day-to-day spending.
Bailey stated that spot Bitcoin ETFs are difficult to get, with applications to start a BlackRock account taking more than ten pages. Bailey also said that there are minimum purchase quantities and recurring maintenance costs to consider. Meanwhile, getting and managing Bitcoin on your own has never been easier or safer.
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