top of page

Crypto gets Institutionalised

Last week the $8.1 Trillion ETF market in the USA got a new asset class to sell and this might have been one of the most anticipated ones in recent years. This asset class could be named crypto ETFs and within this, the first approval came for Bitcoin ETF. The ETFs before this were only participating in the derivatives of crypto but now via this, they would be directly participating in actual assets.

The major names approved by SEC belonged to Blackrock, Fidelity, WisdomTree and eight others. On the very first trading day around $4Bn of shares were traded.

This approval has divided the opinions about the asset class further as according to some reports even the SEC committee was not fully in favour of it. However, the Chairman mentioned that approval of it would help further regulate the asset class.

The interesting part however will be the road ahead. Through post-announcement, the prices of assets have fallen from recent highs. The entry by such large institutions that can own the asset in a fully regulated product is an important change.

Over time, these institutions have proven to change the perception of investors towards an asset class. If the same is repeated for this asset class then this period can be classified as the inflection point of the evolution. However, the underlying asset class might still have large risks involved.


bottom of page