President of the Chicago Board Options Exchange (CBOE) John Palmer has revealed his optimism about the approval of the bitcoin Spot Exchange-Traded Fund (ETF) and its effect on the cryptocurrency landscape.
bitcoin Spot ETF Will Pave the Way for RIA-Based and Pension Funds
The president of CBOE Digital shared his optimism in a recentbitcoin-spot-etfs-drawing-pension-funds-rias?sref=323RPL5z” target=”_blank” rel=”noopener nofollow”> interview on Bloomberg TV on Tuesday, January 2. His comments come a week before the SEC's mandatory deadline for January 10in which the regulatory watchdog is expected to decide whether or not to approve the btc spot ETF.
According to him, the bitcoin Spot ETF will attract new institutional investors following approval by the United States Securities and Exchange Commission (SEC).
Palmer stated:
I think seeing that approval will pave the way for pension funds and RIA-based funds to be able to invest assets in a spot bitcoin ETF, where today they may not be able to get that access with just a bitcoin token. native cash. .
Additionally, he has stated that any possible approval of an ETF could change the way institutions approach derivatives, such as futures contracts and options.
In the interview, Palmer highlighted that the approval of an ETF creates a broader crypto ecosystem. Because of this, there are more large investors and institutional players who are used to hedging risks.
Palmer expects big growth in bitcoin Derivatives products with possible ETF spot approval. He stated that institutional players will eventually “rely more and more on these derivatives” to hedge risks.
When asked about the breakdown between more institutional investors and retail investors on the derivatives aspects, Palmer stated that “the breakdown is difficult to decide yet.” This is because “we're waiting and seeing,” but he believes that “institutions will generally lead the way” and bitcoin Spot ETF participants will use hedging tools.
However, he also noted that “retail will also look for that.” Additionally, he highlighted a broader international following in retail in terms of gaining access to cryptocurrency derivatives.
SEC decision on ETF approval not certain
Fox Business journalist Eleanor Terrett recently underlined his opinion on the SEC's approval of the bitcoin Spot ETF. The journalist turned to X (formerly Twitter) to give his opinion. on the matter.
In the X post, Terrett highlighted how unpredictable the SEC's decision-making process is. “While the SEC is surely unpredictable, I would be surprised if approvals came tomorrow,” he said.
Terrett noted that through conversations it has had with issuers, the SEC needs to evaluate and provide comments on the amendments made to the S-1s, filed Thursday and Friday.
Additionally, the regulator may inform the issuer of the final Form S-1 filing date after this review phase, which could take place “in the next 24 to 48 hours.” However, this is if the SEC decides to reflect the approval schedule to the ethereum Futures in October.
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