Jeremy Allaire, the co-founder and CEO of financial technology company Circle, anticipates that the recent wave of Bitcoin exchange-traded fund (ETF) applications will eventually result in regulatory approvals, as the concerns previously raised by financial watchdogs are being addressed—paving the way for them to be greenlit.
“I think progress is being made with more mature market structures that would support something like that," Allaire said in an interview with Bloomberg. "You have mature spot markets, well-regulated custody infrastructure, and good market surveillance.”
According to the Circle boss, “many of the past concerns are being addressed,” something that makes him believe that Bitcoin ETFs “are more likely to be approved for general investor access.”
An ETF is an investment fund that trades on a stock exchange, allowing investors to gain exposure to a specific asset or group of assets. In the case of a Bitcoin ETF, it would enable investors to trade shares representing ownership of Bitcoin without directly holding the cryptocurrency itself.
Bitcoin ETFs have been a topic of interest and speculation within the crypto community for several years and are already available in some countries the world, including Canada, Brazil and Dubai.
However, the U.S. Securities and Exchange Commission (SEC) has yet to be convinced that a Bitcoin ETF is a reasonable investment vehicle, citing possible fraudulent or manipulative practices and its desire to protect investors.
Allaire, however, is convinced that “digital stores of value like Bitcoin remain a hedge instrument in the context of continued persistent inflation and weakening currencies.”
These Are All the Bitcoin ETFs That Are Now Trading in the US
Since the first application for a U.S. Bitcoin exchange-traded fund was filed in 2013, a spot Bitcoin ETF has become something of a holy grail for the crypto community. And now it’s finally here. An ETF is a publicly traded investment vehicle that tracks the value of an underlying asset; in the case of a Bitcoin ETF, that asset is Bitcoin. Advocates for a Bitcoin ETF argue that the complexities of exchanges, crypto wallets, and private keys still present a daunting barrier to entry into the cryp...
In recent weeks, the SEC has faced a new wave of applications for Bitcoin ETF, starting with one tabled by Wall Street behemoth BlackRock on June 15 and followed by fresh filings from WisdomTree, Invesco and Galaxy Digital, and Valkyrie Investments.
Institutional interest in crypto-based investment products was also highlighted in the latest report released by digital asset management firm CoinShares.
Per the report, the total assets under management in crypto investment products last week reached a yearly high, surpassing a whopping $37 billion.
ProShares' own Bitcoin Strategy ETF (BITO), which tracks Bitcoin's price by strategically investing in CME Bitcoin Futures, also saw the largest inflows in the U.S. at $60.4 million, surpassing $1 billion in total assets under management.
Photo credit
Main image by Nikhilesh De/CoinDesk licensed under CC BY 2.0.
