Despite the growing adoption of various cryptocurrencies (ETFs) around the world, the international trading community continues to ask one question: When will the local Bitcoin (BTC) ETF go live in the United States?
According to some ETF experts, the local Bitcoin ETF could become a reality by mid-2023, after years of rejection by the US Securities and Exchange Commission (SEC). Despite the SEC’s apparent reluctance to allow such a product, players in industries like Grayscale continue to push for a local BTC ETF.
There are a fair number of reasons why the possible approval of the SEC to replace the Bitcoin ETF is still one of the most anticipated events in the community.
21Shares CEO Hany Rashwan believes that a local Bitcoin ETF would open up the cryptocurrency market to institutional and retail investors who are currently excluded from participating in the digital space.
“In the institutional sector, investors are excluded due to investment constraints and uncertainty in supervision,” the CEO told Cointelegraph in an interview.
“For retail investors who are less tech-savvy, the main barriers to investing directly in encryption include creating wallets and trading on exchanges and systems they are unfamiliar with. “Accessing cryptocurrencies by investing in ETFs would solve these problems,” said Rashwan.
He pointed out that the new asset class is associated with certain risks, but “This is exactly the same for other products.”
One of the key differences between owning cryptocurrencies and cryptocurrencies is that investors can buy and sell ETFs through a regular bank or broker in existing investment or trading portfolios, according to 21Shares CEO. “You don’t have to create new accounts or wallets to store the tokens,” Rashwan said.
Total assets invested in cryptocurrencies amounted to USD 16.3 billion
Although the US SEC has not yet approved a pure Bitcoin ETF, such investment products have become increasingly popular in other countries. Canada premiered its first Bitcoin ETF, Purpose Bitcoin ETF, in February 2021, and became one of the first countries in the world to adopt a local BTC ETF.
On 12 May, Australia is expected to start trading in three new local cryptocurrency ETFs, including BTC ETFs from Cosmos Asset Management as well as BTC and Ether (ETH) ETFs from 21Shares.
Apart from net asset-linked ETFs, there is also a wide range of ETFs related to asset derivatives such as futures or contracts that combine the shares of major companies in the cryptocurrency industry.
Crypto ETFs have become increasingly popular, with investors’ total assets in cryptocurrency ETFs (ETPs) reaching $ 16.28 billion at the end of the first quarter, according to data compiled by ETFG research firm ETFGI.
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“We firmly believe that this growth will continue as more cryptocurrencies open up and Europe has been at the forefront of innovation and adoption of ETF cryptocurrencies,” said 21Shares CEO, adding:
“The main lessons are that more and more investors see cryptocurrency allocations as an integral part of a portfolio’s diversity and that they choose to do this with ETFs for the above reasons – easy access, cost-effectiveness and transparency.
Since 21Shares premiered one of its first cryptocurrencies ETPs in 2018, 21Shares has launched a total of 31 crypto ETPs to date with listings spanning major stock exchanges in Frankfurt, Zurich, Paris, Amsterdam. The company has also sought to launch the Bitcoin ETF in the United States and submitted an application to the SEC for the ETF to Ark Investment Management in June 2021. The SEC officially rejected the application for the ETF on March 31.
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