Anticipated Institutional Investment in Bitcoin
According to John Palmer, president of CBOE Digital, institutional investment in Bitcoin is expected to increase significantly once the SEC approves the first-ever spot ETF. This approval would allow pension funds and registered investment advisers (RIAs) to access Bitcoin assets through a spot ETF, a move currently limited to standard Bitcoin tokens.
Bitcoin’s Surge and SEC Deadline
The value of Bitcoin recently surpassed $45,000 for the first time in almost two years, coinciding with the SEC’s upcoming decision on approving a spot ETF for Bitcoin by January 10. Prominent financial entities like BlackRock and Fidelity have made amendments to their filings in anticipation of this deadline.
Expansion of Bitcoin Derivatives
Palmer also predicts an increase in the use of Bitcoin derivatives by institutional investors for risk management, particularly if a spot ETF is introduced. CBOE Digital, under Palmer’s leadership, plans to launch margined futures for Bitcoin and Ether on January 11, providing clients with the flexibility to trade futures without requiring full collateral upfront.
Hot Take: Institutional Interest on the Horizon
Institutional investment in Bitcoin could experience a significant boost if the SEC approves a spot ETF. This would enable pension funds and RIAs to access Bitcoin assets more easily. With Bitcoin’s recent surge and key financial players preparing for the SEC’s decision, there is growing anticipation in the market. Additionally, the expansion of Bitcoin derivative products offers institutional investors opportunities for risk management. As CBOE Digital prepares to introduce margined futures for Bitcoin and Ether, the stage is set for increased institutional involvement in the cryptocurrency space.
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