As the Wild West meets Wall Street, there’s a lot of demand for bitcoin ETFs. This week, Wall Street welcomed the crypto industry with open arms. As the first US exchange-traded bitcoin fund, it raised more than $1 billion in capital. And propelled the price of the most popular digital currencies to new highs.
Similar vehicles already exist in other markets, but after eight years of pushing authorities. The debut of a crypto ETF on the world’s largest stock market is a huge milestone for crypto enthusiasts.
For the first time, traditional financial assets such as equities and bonds can now be held alongside bitcoin-linked securities. Those that are listed in the United States.
“This is the quickest ETF to reach $1 billion in assets… “This is unusual in terms of asset growth and trading volume, and it’s a symptom of pent-up demand, “said Todd Rosenbluth. He is also CFRA’s head of ETF and mutual fund research.
The well-received launch of the bitcoin ETF demonstrates how traditional financial institutions. As they are also vying for a piece of the digital asset market. It also reflects a growing recognition among many financial watchdogs. That the sector has grown too huge and is growing too quickly to ignore.
Other Retail Investors
Retail investors accounted for only 12% of net buying, according to JPMorgan statistics. The ProShares ETF on the first two days of trade, indicating strong institutional interest. Valkyrie Funds introduced a similar vehicle on Friday, three days after the ProShares product. In a move that analysts believe will copied many times.
Other headlines this week have added to the buzz around digital assets. Including a massive financing round by crypto exchange FTX supported by a slew of blue-chip investors.
These are indicators of growing interest, as well as an increase in professional traders utilizing crypto. As a platform for sophisticated market wagers, helped push bitcoin’s price beyond $66,000 for the first time on Wednesday. Before falling to around $61,000 by Friday. Coinbase, the largest publicly traded exchange. Saw its stock rise by more than 10% in the days leading up to the debut.
Many analysts, however, as the Wild west believes that the ProShares ETF’s launch is simply the beginning of a much longer battle. To persuade the Securities and Exchange Commission that a product that provides a direct connection. Mostly unregulated, crypto markets should traded on Wall Street exchanges.
Allowing the ProShares ETF to go Ahead
The fact that the ProShares ETF owns futures contracts traded on the Chicago Mercantile Exchange. A fully regulated venue, rather than digital coins directly, was the deciding factor for the SEC in approving it. Cryptocurrencies often purchased and sold in a market that commission chair Gary Gensler has dubbed the “Wild West.”
In an interview with CNBC. Gensler said, “What you have here is a product that has been monitored for four years by. [The Commodity Futures Trading Commission] and that is being wrapped inside of something inside our authority… We have some potential to bring it within investor protection. “
On Monday, Interactive Brokers, the retail broker, announced crypto trading for financial advisers, but its chair, Thomas Peterffy. I was more cautious about the benefit of holding the ProShares fund or others like it to investors.
Peterffy, who pioneered bringing computing to Wall Street in the late 1960s. By using computers to assess the value of securities and options. It is also said the only use for crypto was as a backup if the monetary or banking system failed.