Industry expert Nate Geraci emphasizes why Bitcoin ETFs are far from over.
The spot Bitcoin exchange-traded fund (ETF) market has soaked up $50 billion in assets under management (AUM) within the past 2.4 months. Still, a recent slowdown in inflows has caused several media platforms to suggest that the market’s surge is over. An ETF expert says otherwise.
Are Bitcoin ETFs Dead?
Nate Geraci, the president of The ETF Store and an industry expert, has shared a factor that can drive the next surge in engagement with the spot Bitcoin ETF product.
He explained that Registered Investment Advisor (RIA) platforms and brokerage firms are yet to embrace the Bitcoin-backed ETF product. Geraci’s line of thought is that if platforms that fall under these categories adopt the spot Bitcoin ETF, a new wave of investors will show interest in the product.
Currently, the financial product is available on a slew of investment management companies like BlackRock, VanEck, Fidelity Investments, and Grayscale.
Geraci recalled a time when there was no demand for spot Bitcoin ETF before its approval came on January 10th.
Other financial institutions have shown interest in the investment vehicle. Last month, United States banks collectively submitted a letter to the U.S. Securities and Exchange Commission (SEC) requesting a modification to the existing crypto guidelines. The proposed adjustment will potentially enable banks to tap into the flourishing Bitcoin ETF business.
The ETF expert’s comments spring from a series of news media suggesting that the spot Bitcoin ETF party is over, one of which is the Financial Times. In the real sense, investors continue to plunge funds into the financial product.
Why the Reduced Engagement With Bitcoin ETFs?
Even though the spot Bitcoin ETF market has raked in a net volume of about $11 billion, a reduced engagement with the financial product has ensued. The decreased attention is largely owed to Bitcoin’s price drop.
Earlier this month, BTC touched several peak values, reaching as high as $73,700. However, the value has dropped. At press time, the asset traded at $68,800, representing a 5% surge in the past 24 hours.
