Bitcoin Spot ETF Approval Likely to Trigger Buying Rally: EY Executive
The surge in demand for Bitcoin among institutional investors is set to hit new heights, particularly if a spot Bitcoin exchange-traded fund (ETF) is approved in the coming months, according to an Ernst & Young executive.
In a CNBC’s StreetSigns special appearance, Ernst & Young executive Paul Brody stated that institutional investors are now setting their sights on the world’s largest cryptocurrency by market cap.
According to Brody, this has led to a pent-up demand for Bitcoin due to the reluctance of the US Securities and Exchange Commission (SEC) to approve a spot ETF in the last couple of years.
Putting the demand into context, Brody stated that a whopping $200 trillion in assets under management (AUM) from the “Big Four” asset managers are waiting on the sidelines for a spot ETF approval from relevant authorities.
For now, entering into the crypto space is not feasible until an ETF is given the go-ahead.
He continued by saying that many investors don’t buy Bitcoin due to its decentralized value transfer potential but rather as an asset. This means more mainstream investors are warming to the idea of becoming exposed to Bitcoin via an ETF in the coming months.
Brody’s comments highlight a growing number of activities in the asset management field in the last couple of months.
A number of top asset managers like BlackRock, VanEck, and Grayscale have shown strong intentions towards offering institutionally-backed Bitcoin trading services via an ETF.
However, the stumbling has been the SEC, which has continued to drag its feet, citing several challenges why a Bitcoin spot ETF might not be in the interest of the general investors.
Issues surrounding the inability to properly track the Bitcoin price and market manipulation
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