CBOE Predicts Spot Bitcoin ETFs to Draw Investments from Pension Funds and RIA-Based Funds
The Chicago Board Options Exchange (CBOE) believes the approval of spot Bitcoin (BTC) ETFs will usher in a new wave of institutional investors.
In a recent interview on Bloomberg TV, John Palmer, the president of CBOE Digital, said that ETF approval would unlock opportunities for institutional and retail interest in Bitcoin derivatives.
Palmer emphasized that the approval of spot Bitcoin ETFs would pave the way for pension funds and Registered Investment Advisor (RIA)-based funds to invest in these assets.
Currently, many funds face barriers when seeking direct exposure to Bitcoin. RIAs are companies registered with regulatory agencies to offer investment advice, and their entry into the Bitcoin market would mark a significant development.
The statement from Palmer comes just a week before the Securities and Exchange Commission (SEC) deadline of January 10, when it will decide whether to approve the ARK Invest 21 Shares Bitcoin ETF application.
The outcome of this decision could have far-reaching implications for the market.
Palmer also anticipates a substantial expansion of Bitcoin derivatives products if a spot ETF is approved.
Institutional investors are likely to increasingly rely on these derivatives to mitigate risks associated with Bitcoin holdings.
While Palmer acknowledged that it is challenging to predict the breakdown of investors, he acknowledged that institutions are at the forefront of accessing hedging tools.
However, he also believes that retail investors will seek similar opportunities.
CBOE Digital, the cryptocurrency division of the exchange, is planning to launch margined Bitcoin and Ether derivatives trading on January 11.
This will enable investors to trade these contracts without
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