The Chicago Board of Options Exchange (CBOE), America's largest options exchange, says spot Bitcoin (BTC) exchange traded funds (ETFs) will attract a whole new wave of institutional investors.
January 2nd interview CBOE Digital President John Palmer said on Bloomberg TV that the approval opens the door to a new wave of institutional and ultimately retail interest in Bitcoin derivatives.
“Approval paves the way for pension funds and RIA-based funds to be able to invest in assets in Spot Bitcoin ETFs,” he said, adding that many funds currently have no direct exposure to Bitcoin. He added that he couldn't get it.
RIAs are companies registered with federal or state regulators to provide investment advice.
Palmer's comments come one week after the January 10 deadline for the SEC to decide whether to approve the application for the ARK Invest 21 Shares Bitcoin ETF.
Additionally, Palmer expects Bitcoin derivatives products to expand significantly following the potential approval of spot ETFs. He added that it was inevitable that institutional investors would “increasingly rely on these derivatives” to hedge their risks.
“It's going to be hard to tell what's going to happen,” Palmer said. [investor] “The collapse is still a long way off,” he said, noting that financial institutions are leading the way in accessing hedging tools. “But retail will explore that as well.”
CBOE Digital is the cryptocurrency division of the exchange that offers virtual currency futures and options trading. The company plans to launch margined Bitcoin and Ether derivatives trading on January 11th, allowing investors to trade contracts without having to provide full collateral.
Related article: Spot Bitcoin ETF could be rejected if SEC asks for “more time” — Analyst
Meanwhile, some mutual funds have begun making plans to increase their exposure to spot Bitcoin ETFs if approved.
On January 2, mutual fund manager Advisors Preferred Trust announced adjusted the prospectus To that end, the fund will invest up to 15% of its total assets to indirectly gain exposure to Bitcoin through shares in the Grayscale Bitcoin Trust, the ProShares Bitcoin Strategy ETF, and Bitcoin futures contracts. I can invest.''
Breaking: A pattern is emerging. Other funds that are already registered as traded securities on Nasdaq have amended their prospectuses to allow 15% to 50% of their assets under management to be exposed to Bitcoin through spot Bitcoin ETFs. @Sailor I called it.
Here you will see Advisors Preferred Trust… pic.twitter.com/Za7DNRXs36
— Marty Party (@martypartymusic) January 2, 2024
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