Bitcoin ETF Issuers Compete for Investors Using Google Ads
Multiple issuers of Bitcoin (BTC) exchange-traded funds (ETFs) are vying for investors by utilizing Google ads. After the U.S. Securities and Exchange Commission (SEC) approved spot BTC ETFs, Google lifted its five-year ban on cryptocurrency promotion in search results. BlackRock and VanEck were the first to take advantage of this updated policy, but other firms have joined in.
While promoting initial coin offerings (ICOs) is still prohibited, companies can now advertise crypto-backed funds on Google. Bitwise, Fidelity, Grayscale, and Invesco have launched ad campaigns for their spot Bitcoin ETFs as they compete to attract retail capital.
Although Google did not disclose the advertising costs for these firms, being able to advertise on the world’s largest search engine likely intensifies the competition between issuers like BlackRock, ARK 21Shares, and Franklin Templeton.
Prior to SEC approval, many issuers began marketing their ETFs on social media platforms and offered attractive fees with some even waiving fees for up to a year.
Inflows and Outflows of Spot Bitcoin ETFs
Spot Bitcoin ETFs have experienced significant inflows and outflows. Grayscale has been a major driver behind the outflows, with over $4 billion worth of exits from its GBTC following approval. However, JPMorgan analysts predict a cooldown in GBTC outflows as BlackRock and Fidelity entered the top 10 ETFs with a combined $4.8 billion in inflows last month.
To mitigate risk and enhance investor safety, some issuers are diversifying their crypto custodians.
Hot Take: Increased Competition in Bitcoin ETF Market
The lifting of Google’s ban on cryptocurrency ads has sparked increased competition among issuers of Bitcoin ETFs. With the ability to advertise on the world’s largest search engine, companies like BlackRock, ARK 21Shares, and Franklin Templeton are vying for investors’ attention and capital. This move comes after the approval of spot BTC ETFs by the SEC.
While initial coin offerings remain prohibited from advertising on Google, issuers can now promote their crypto-backed funds. This has led to ad campaigns from Bitwise, Fidelity, Grayscale, and Invesco as they compete to attract retail investors. The influx and outflow of funds in spot Bitcoin ETFs, particularly driven by Grayscale’s GBTC, have been noteworthy. However, the entry of BlackRock and Fidelity into the top 10 ETFs suggests a potential shift in investor behavior.
As competition heats up, some issuers are diversifying their crypto custodians to mitigate risk and ensure greater safety for investors.
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