A spot Bitcoin exchange-traded fund (ETF) could rapidly become a $100 billion market, according to new projections by analysts at Bloomberg Intelligence. This prediction comes as Wall Street eagerly awaits the SEC’s decision on the first Bitcoin ETF in the US.
Institutional Interest Driven by ETF Debut
Earlier this month, crypto firm Galaxy Digital held a call with around 300 investment professionals to discuss allocating funds to Bitcoin in anticipation of an ETF approval. Jeff Janson of Summit Wealth, which manages $550 million in client assets, highlights the substantial institutional interest building around Bitcoin. He believes that once Bitcoin is accessible through an ETF, institutional investors will show significant interest. Janson stated, “We want to perform well for our clients, and we think that a Bitcoin ETF is going to be a differentiator in how we perform versus other advisors.” Chuck Cumello, CEO at Essex Financial Services, also mentioned receiving inquiries from high-net-worth investors regarding a potential ETF. Cumello believes that SEC’s approval of a Bitcoin ETF would be a “game changer” that simplifies investing in the digital asset through existing investment accounts.
Approval Prospects and Roadblocks
Various major traditional finance players, such as Fidelity, Ark Invest, and BlackRock, have submitted ETF applications. While some experts believe in the inevitability of approval, others, like BitGo CEO Mike Belshe, anticipate another round of rejections. In a recent Bloomberg TV interview, Belshe emphasized the need to separate exchanges from custody, as highlighted by Gary Gensler. The crypto industry, however, remains optimistic about the prospects of a Bitcoin ETF in the US despite potential roadblocks.
“Despite these potential roadblocks, the crypto industry is optimistic about the prospects of finally getting a Bitcoin ETF across the finish line in the US. With over $100 billion in capital waiting on the sidelines until approval, a Bitcoin ETF would represent a major milestone for cryptocurrency adoption by traditional finance.”
