The crypto industry has had an impressive year, not only with the entry of new investors and growing adoption, but also with the introduction of a wide range of investment products. new, including the first US Bitcoin ETF launched after years of waiting by digital asset enthusiasts.
Even as the ProShares Bitcoin Strategy ETF (BITO) recorded record numbers at the time of its October launch, a huge segment of investors were still disappointed that there was only ETF based on BTC futures contracts. licensed by the Securities and Exchange Commission (SEC).
The SEC’s continued rejection of a spot BTC ETF has led many asset managers to turn to neighboring Canada or even withdraw their applications altogether.
In a recent podcast, the CEO of crypto asset manager Bitwise, Matthew Hougan believe While the launch of BITO is important for the crypto ecosystem as it signals massive growth and capital inflows, it may not be the best product for investors.
“This is an imperfect product, nobody loves it. Great if you’re trading Bitcoin for a week, not so good if you hold it for a year… it’s not a niche product… Was expected to be the product that would allow the institutional wall of money to flood in But the reality is gradually showing that it is a false story.”
Interestingly, the Bitcoin futures ETF that invests in contracts used to speculate on the price of Bitcoin in the future, in fact underperforms the spot market, making everyone suspicious of intentions.” investor protection” of the SEC.
One of the limitations of futures-based ETFs is their lack of appeal to financial advisors, who control the majority of Americans’ wealth, and “simply won’t buy crypto on the app.” phone to their customers”.
Hougan further noted that while a Bitcoin ETF would be a more viable option, “the futures product cannot be described as an optimal exposure to the asset.”
However, some past government reactions to investment products can be seen, with Congress expressing distrust of ETFs when they were first introduced as an investment product. investment products in 1993.
This is a lesson for the current crypto market. Hougan says:
“The world is not necessarily skeptical on this matter. You can succeed through constant lobbying and analysis towards a future where it is accepted as normal.”
The recent congressional hearings that several crypto CEOs participated in along with the government’s increased interest in the industry can be seen as a positive step. A comprehensive cryptocurrency bill is even likely to be proposed by Congressman Lummis early next year.
“I think the next bull market in crypto will be driven by positive developments in regulation and I think it will come sooner than people expect.”
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