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The Bitcoin ETFs have been among the hot topics in the crypto space for quite a long time. Earlier, exchange traded funds (ETFs) used to provide users with exposure of tangible assets like gold, silver etc. The popularity of ‘digital gold’ brought the opportunity for an ETF and the product became a reality later. Though many believe products like the Bitcoin ETF will change the crypto landscape, some big personalities do not share that belief.
ETFs to Benefit Bitcoin (BTC) Only, Not Overall Crypto
Bloomberg reported that the managing director of subsidiary firm of banking giant JPMorgan Chase, J.P. Morgan, Nikolaos Panigirtzoglou, presented a contrasting stance towards spot Bitcoin ETF. He reportedly stated that after approval, a spot BTC ETF would not become a game changer in the broader cryptocurrency market.
According to Panigirtzoglou, the leading cryptocurrency Bitcoin (BTC) is likely to get benefitted the most out of it rather than the whole crypto industry.
Regions including Canada and Europe already have productis like spot Bitcoin ETF and they are going to have a similar impact in the United States as they did in the regions with these financial products.
Bitcoin ETFs reportedly have attracted relatively less “investor interest” in other countries than expected. The assumption could be made as the results were not satisfactory enough to share the inflow from existing gold ETFs.
However, as mentioned earlier, Panigirtzoglou is hopeful the spot Bitcoin ETFs could benefit Bitcoin (BTC) in the US. He thinks that the approval of financial products would result in bringing more liquidity in the Bitcoin markets. However, he also showcased the concern of trading activities in Bitcoin future products to get affected after spot product activities surged sharply.
The reason why the stance of Panigirtzoglou on the spot Bitcoin ETF could be considered different could be explained by the trends over the past several days. Many traditional finance (TradFi) institutions have ventured into the space following the filing for an ETF with the SEC.
BlackRock Director Believes BTC is an International Asset
In a recent interview, chief executive officer of BlackRock, Larry Fink, praised the leading cryptocurrency. He thinks of investors turning to Bitcoin in times of inflation and fiat currencies devaluation turning crypto into an alternative asset to hedge.
Fink said “Bitcoin is an international asset” since it’s not linked or related to only one currency and could play a crucial role as an alternate asset for people.
BlackRock is one of the earliest players to file for spot Bitcoin ETF in the recent flurry of filings, in fact, it started it. With the biggest asset management firm stepping in, other tradfi players including Fidelity Investments, Invesco and several others followed.
The US financial regulator had historically rejected the application for spot Bitcoin ETFs, though the hopes are high this time given BlackRock’s filing. The asset manager is said to have a score of 549 funds approved out of 550 filings to date, Bloomberg Intelligence analysts suggest.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
