Word on the street is that the head honcho at CBOE Digital, a hub for crypto dealings, is feeling pretty upbeat about the upcoming approval of the first Bitcoin exchange-traded fund (ETF) in the U.S. According to the latest scoop from Bloomberg, John Palmer is eyeing a surge in interest from institutional players once the U.S. Securities and Exchange Commission (SEC) gives the thumbs up to the inaugural spot ETF for the big shot in the crypto world – Bitcoin.
Palmer is crossing his fingers for a wave of new institutional investors, with pension funds and those handled by registered investment advisors (RIAs) leading the charge. The idea is that once the SEC gives its nod, these savvy investors will be drawn to Bitcoin assets like bees to honey.
The proposed financial tool would allow investors to ride the Bitcoin wave without actually holding the digital currency in their pockets. According to Palmer, this approval will clear the path for pension funds and RIA-based funds to dive into the world of spot Bitcoin ETFs, providing access that might be elusive in the current landscape limited to native spot Bitcoin tokens.
In Palmer’s words, shared through the grapevine of Bloomberg
“Seeing that approval is going to pave the way for pension funds and RIA-based funds to be able to invest in assets in a spot Bitcoin ETF where they may not be able to gain that access today in just a native, spot Bitcoin token.”
Palmer also predicts a blossoming of Bitcoin derivative products, with the potential green light for the spot ETF. He foresees institutions relying more and more on these derivatives as a safety net to hedge against risks.
The report mentions big names in finance, such as BlackRock, VanEck, Valkyrie Investments, and Fidelity, all eagerly awaiting the regulatory thumbs up to offer their own spot Bitcoin ETFs. The SEC’s deadline to make the call on these applications is set for January 10th, so the crypto community is on the edge of its seat, waiting to see if the dominoes will start falling.