There seems to be an interesting trend developing among institutional actors like your interest in bitcoin-blasts-past-45000-as-etf-hype-heats-up/” rel=”nofollow”>flagship cryptocurrency, bitcoin, continues to increase. This interest is largely due to the frenzy around spot bitcoin ETFs, which could be bitcoin-etf-nod-wont-happen-this-week-journalist/” rel=”nofollow”>approved sooner rather than later.
Other ETFs that consider bitcoin as an investment option
Marty Party, cryptocurrency commentator and music producer recently drew The crypto community's attention to an emerging trend among fund managers and their ETFs. He pointed out how these asset managers are modifying the prospectuses of the funds they manage in order to gain exposure to bitcoin.
These institutions are said to be looking to use between 15% and 50% of the assets under their management to gain exposure to btc. One way to achieve this is through bitcoin Spot ETFs that could bitcoin-shares/” rel=”nofollow”>potentially launching soon.
Marty Party specifically highlighted the case of Advisors Preferred Trust, which is already seeking permission from the SEC to invest up to 15% of its AuM in bitcoin-related ETFs such as bitcoin Trust in Grayscale (GBTC) and bitcoin-proshares-etf-launched/” rel=”nofollow”>ProShares bitcoin Strategy ETF.
MicroStrategy CEO and co-founder Michael Saylor had previously hinted that something like this was going to happen very soon. He then suggested that more institutional players were going to direct more capital into bitcoin.
A rule that was implemented by the bitcoin-apple-amazon-google-balance-sheet/” rel=”nofollow”>Financial Accounting Standards Board (FASB) has also paved the way for more companies like MicroStrategy to include btc on their balance sheet.
The launch of the Spot bitcoin ETF will also make it easier for these institutional investors to gain direct exposure to the flagship cryptocurrency.
For a long time now, those who had a prior interest in the crypto token have had to invest in bitcoin futures ETFs or other bitcoin derivatives on exchanges such as the crypto-traders-rejoice-cme-boosts-btc-options/” rel=”nofollow”>Chicago Mercantile Exchange (CME). But this is changing with the possible approval of a bitcoin Spot ETF.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Registered-funds-want-exposure-to-BTC" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc price holds $45,000 | Source: BTCUSD on Tradingview.com
Grayscale leading the “Cointucky Derby”
As recently highlighted Bloomberg analyst James SeyffartGrayscale seeks to lead the way, assuming that everyone Pending bitcoin Spot ETFs were approved simultaneously. This is because the asset manager has already established itself with GBTC and would likely have more capital than other issuers at the time of launch.
Eric Balchunas, Bloomberg analyst highlighted this fact and hinted that the National stock market Commission (SEC) could decide not to allow Grayscale to launch on day one because of this. If that doesn't happen and all funds launch simultaneously, then Grayscale will likely have a sort of “first-mover advantage.”
However, other asset managers will seek to assert their dominance by adopting different strategies. One such strategy will be for these issuers to undercut themselves in terms of the fees they will charge for managing their respective funds. Invesco he already made it known that they will waive fees for the first six months and the first $5 billion in assets.
Featured image from Finra, chart from Tradingview.com
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