BitWise Says Professional Investors Are Waiting For A Bitcoin ETF Before Buying Cryptocurrencies


Professional US Investors Are Waiting For A Bitcoin ETF Before Purchasing Cryptocurrencies

The Cboe BZX Exchange has decided to withdraw its Bitcoin Exchange Traded Fund application that was filed last June. The decision was taken on January 22nd after a letter that was published on the U.S. Securities and Exchange Commission (SEC) official site.

Eduardo Aleman, the SEC deputy secretary, explained that the Cboe BZX Exchange decided to rescind its proposal related to a rule change. The intention was to list share of the VanEck SolidX Bitcoin Trust.

The SEC had to take a decision on whether to approve or not the first Bitcoin exchange-traded fund (ETF) in the market. The final date to take this decision was February 27, the same date as the delayed Ethereum’s Constantinople hard fork.

This ETF application was very important for the whole cryptocurrency community since, if approved, it could have helped the market to recover part of the price lost. At the same time, it could have helped new investors have access to the cryptocurrency space.

There are other companies that are trying to have an ETF approved. This is the case of Coinbase, Gemini and Bakkt, among others.

As reported by the Bitwise Asset Management Team, US investors are waiting for the approval of the first Bitcoin ETF to enter the market. Furthermore, the ETF would be very positive for the crypto space because it would legitimize it.

On the matter, they explained:

“We recently commissioned a formal survey of 150 financial advisors, and a strong majority – 58% – said that an ETF would be their preferred way to invest. When asked what would make them more comfortable allocating to crypto in client portfolios, 54% said ‘better regulation’ and 35% said ‘the launch of an ETF.’ This holds true for many family offices and institutions as well.”

According to Bitwise and its team, if a Bitcoin ETF is listed, this would be just the beginning of the journey for a new fund. As soon as an ETF is listed, investment companies will be evaluating them and other firms will also start considering them for clients.

Regulations in the cryptocurrency world do not exist yet. This is something that must change if the market wants to grow. There are some countries that are starting to develop clearer rules regarding digital assets and virtual currencies. Malta and Switzerland are just examples of this.

The SEC is also trying to play a more active role in protecting investors and avoiding scammers and fraudulent activities.

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