The possibility of a Bitcoin spot Exchange Traded Fund (ETF) launching in the US, which has gained much attention over the past months, has again made headlines due to Bloomberg ETF analyst Eric Balchunas’s recent suggestions.
According to the analyst, should the US Securities and Exchange Commission (SEC) approve BlackRock’s Bitcoin spot ETF, a vast pool of $30 trillion capital overseen by US financial advisors could be directed toward Bitcoin investments.
The analyst noted that only a fraction of that amount might consider investing. Balchunas noted: “But even if 0.5% of that allocates, it’s $150b.”
Balchunas noted:
Their application triggered a wave of similar filings by other prominent firms such as ARK Investment, Valkyrie, and Fidelity, setting the stage for a highly competitive environment.
The US isn’t entirely unacquainted with BTC ETFs. Bitcoin futures ETFs have already made their mark, albeit in a limited manner.
As it stands, these futures-based ETFs amass roughly $1 billion in total assets under management. A figure that, though impressive, may appear minor in the face of a spot ETF’s potential.
Featured image from iStock, Chart from TradingView
