According to a Bloomberg report: Wall Street is experiencing increased interest in Bitcoin due to the potential for Bitcoin exchange-traded funds (ETFs) to open digital currency investing to institutional and retail investors. This comes as the US Securities and Exchange Commission (SEC) may soon approve these tax-efficient and cost-effective investment mechanisms to buy and sell Bitcoin.
Predictions suggest this could turn the spot-Bitcoin ETF market into a $100 billion market, with heavyweights like BlackRock, Fidelity, and Invesco likely to enter the sector. Investment professionals are already considering allocating to Bitcoin in light of the potential ETF debut.
However, not everyone shares the potential bull case that once a Bitcoin ETF is introduced, it's going to attract substantial institutional-level interest. Many investors remain cautious due to the turbulent events in the crypto industry, including the FTX implosion and various scams, which have dented the credibility of the sector.
However, Bitcoin ETF optimists see it as a game changer. Wealth managers and high-net-worth individuals are excited about the potential ease of investing in Bitcoin through an ETF, which they see as a simple trade in client's investment advisory accounts.
The effect of a Bitcoin ETF goes beyond immediate inflows into these products. It's potentially a significant opportunity for institutional counterparties, leading to fresh lending and derivatives trades. However, this new phase of market evolution will likely take some time to materialize.
