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Home » We will have to wait up to three months for money to flow from trading Bitcoin ETFs

We will have to wait up to three months for money to flow from trading Bitcoin ETFs

Although the listing of the first Bitcoin spot ETFs approved in the US may happen in a few days, we will have to wait about three months for money to flow from derivatives trading.

Ophelia Snyder, co-founder of 21Shares, one of the companies whose ETF was approved by the SEC on January 10, said this in an interview.

Snyder explained that the delay is not only due to this It takes months to evaluate the impact of products on the marketThis also influences the fact that asset management firms must follow several processes before adding ETFs to their allocation list.

“This normally takes 90 days, so we won’t see what it will actually look like for another quarter,” he added. At the same time, he explained the fact that a product can be brought to market That doesn't mean everyone can buy it right away.. “A lot of compliance is required,” he said.

When it comes to trading volume, Snyder believes it is impossible to imagine the possible changes caused by the entry of ETFs into the market. Although it is clear that will attract huge demand from institutional investors.

A similar idea express Reggie Brown, global co-head of GTS ETF trading and sales at Bloomberg, except that Do you think it's time to see the money flow will be less. In his opinion, the cash flow could already be around 2,000 to 3,000 million dollars within thirty days. He estimates that trading volume could attract between $10,000 and $20,000 million in new assets this year.

The approach is shared by Som Seif, who runs the Purpose Bitcoin ETF (BTCC), the first Bitcoin ETF to launch in Canada in 2021.

Seif is guided by his experience trading the Purpose Bitcoin ETF, which has one of the largest derivatives markets mobilized around $1.7 billion in assets, according to data on its website.

“Our product is marketed extremely efficiently and with very tight spreads,” said Seif.

As CriptoNoticias reports, BTCC's performance shows that cryptocurrency trading initially decreased slightly, while ETF trading increased. This is likely due to the interest generated among traditional investors in the possibility of exposure to the asset.

Matt Hougan, CIO of Bitwise Asset Management, another SEC-approved ETF, agreed with Seif. “The underlying market is very liquid. “The main questions are who gets liquidity and who wins on spending,” he said.

However, it must be taken into account that it is still unclear whether large institutions and financial advisors will allow its investors to trade Bitcoins on their platforms. Additionally, uncertainty remains over how the industry will be regulated in the United States, and cryptocurrencies are now facing greater scrutiny.

Snyder reminds that the fact that ETFs have been approved does not mean that the underlying asset receive no disapproval from the authorities.

“What the SEC is going to do about Bitcoin is still important, and that's something that people just don't fully understand.” Financial company executives risk their reputations and careers with the investments they make. “If they invest in Bitcoin and then the SEC decides it’s illegal, that’s going to be a problem.”

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