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On December 25th, BitMEX Research announced the complete list of crypto-related exchange traded products (ETPs).
It reported that there are 150 crypto-related ETPs around the world with $50.3 billion in assets under management.
office I got it. It says it could help “determine the extent to which Spot Bitcoin ETFs cannibalize existing ETPs or attract new capital into the crypto space.”
Cannibalization of virtual currency ETP
Funds could simply flow into the new spot BTC ETF from these existing products.
Grayscale Bitcoin Trust (GBTC) is the largest of these, with $27 billion in assets under management.
It is already established and has a strong investor base. But Grayscale could be left behind if the SEC approves a rival spot product while not allowing the fund to convert at the same time.
“If they do that, we’re going to be in a terrible situation,” Grayscale CEO Michael Sonnenshein said last week. [the SEC] This would be a disservice to hundreds of thousands of investors who are considering other products coming to market before GBTC. ”
The dozen or so companies waiting on the SEC are expected to have their products approved en masse in early January.
A large-scale demand shock for BTC is unlikely in the near term, and the market will already factored in Possibility of ETF approval.
However, demand will emerge over time as Bitcoin becomes a mainstream asset. Analyst Willy Wu commented, “Bitcoin will soon become mainstream in wealth distribution.”
He said that assuming a 5% allocation in the portfolio, “the richest top 1% would hold 0.87 BTC.”
Are ETFs good for Bitcoin?
However, BitMEX founder Arthur Hayes said, A darker scenario than expected ETFs managed by traditional financial institutions could completely destroy Bitcoin.
He opined that eventually a small number of companies could hold and control all BTC, rendering the blockchain network useless.
In association with newsthe SEC told issuers that applications fully completed and submitted by Friday, December 29, will be considered in the first wave.
Several issuers, including BlackRock, WisdomTree and Ark, amended their filings last week to accommodate cash generation and redemptions.
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