According to Bloomberg ETF analyst Eric Balchunas, the approval of a bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) could potentially drive an astonishing $30 trillion worth of capital into the bitcoin market.
This substantial sum represents the vast amount of assets managed by financial advisors in the United States who are eager to gain exposure to bitcoin through a regulated exchange traded fund.
In a Bloomberg podcast, Balchunas shed light on the investment preferences of baby boomers and financial advisors, stating that ETFs are the favored format for delivering investments to this demographic.
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The recent application submitted by BlackRock, the world’s largest asset manager, for a bitcoin spot ETF has ignited a wave of optimism throughout the bitcoin market. Following BlackRock, other major firms such as ARK Investment, Valkyrie, and Fidelity have promptly filed their own applications for a bitcoin ETF, recognizing the immense potential of this investment vehicle.
Balchunas notes that the involvement of BlackRock alone has significantly increased the likelihood of a bitcoin spot ETF being approved to a promising 50%.
He highlights the intelligence and strategic approach of BlackRock, emphasizing that they do not submit filings randomly. Their decision to pursue a bitcoin spot ETF indicates their astute observations of market dynamics and a belief that they possess a viable proposal that can successfully navigate regulatory scrutiny.
The collective actions of these prominent financial institutions signal a growing recognition and acceptance of bitcoin as a legitimate asset class.
If the SEC were to approve a bitcoin spot ETF, it would not only provide a regulated platform for investors to access bitcoin but also serve as a significant endorsement of it by traditional financial institutions.
The potential influx of capital resulting from such approval could have a profound impact on the bitcoin market, further solidifying its position as a mainstream investment option.