Binance, the world's largest crypto exchange, pled guilty to violating U.S. anti-money laundering rules. These factors continue to scare investors.
Although ETFs are listed on strictly controlled stock exchanges, regular investors can access them through their brokerage accounts, which are similarly closely supervised.
The ETF structure makes bitcoin more accessible to institutional investors, some of whom cannot invest directly in alternative assets.
In 2021, the SEC approved bitcoin futures ETFs, which track pre-agreed bitcoin purchase and sell agreements. These products don't track price fluctuations well, and rolling over futures contracts can reduce returns, making them less appealing to investors.
Yes. However, the US capital market has some of the world's largest asset managers and institutional investors. It's unclear. The first bitcoin futures ETF approved by the SEC in 2021, the ProShares Bitcoin Strategy ETF (BITO.P), opened new tab, traded over $1 billion on its debut day. Some analysts predict a spot bitcoin ETF could trade three times that much. Experts predict it might reach $55 billion in five years.
Since the Grayscale verdict, bitcoin has gained 70%, but analysts are unsure how much higher it will go, with some citing interest rates.
A spot bitcoin ETF boosts the crypto industry's respectability and mainstreams bitcoin.
The crypto business and SEC, which has been tightening down on the sector, are also at odds. In this conflict, the industry wins.
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