Wall Street Needs More Time to Digest Bitcoin, Says Analyst
UPDATED: March 19, 2024, 9:28AM EDT
According to a prominent analyst, Wall Street needs more time to fully understand and embrace Bitcoin before it is ready for the launch of another cryptocurrency exchange-traded fund (ETF). Matt Hougan, Chief Investment Officer at Bitwise Asset Management, expressed his belief that the market should delay the launch of a spot ether ETF until December instead of May.
The May Deadline for Spot Ether ETFs
The Securities and Exchange Commission (SEC) has set May as the initial deadline to approve or deny pending spot ether ETF applications. However, industry experts are now less optimistic about the May launch due to a perceived lack of progress. Hougan believes that delaying the launch until December will give Wall Street more time to digest Bitcoin and prepare for another ETF.
Giving Wall Street Time to Ingest Bitcoin
Hougan argues that Wall Street and traditional financial institutions are still in the early stages of understanding and adopting Bitcoin. He suggests that they need more time to fully grasp the concept and potential of cryptocurrencies before diving into new investment products.
“I think Wall Street/traditional finance just started ingesting this giant thing called bitcoin. And they’re just getting their hands around it,” Hougan explained during a panel discussion on bitcoin ETFs at the Digital Asset Conference in London. “And I think you need to give them longer to digest.”
According to Hougan, it would be beneficial for spot ether ETFs to launch in December because:
- Wall Street needs around 8-9 months to fully understand and embrace Bitcoin
- Launching in December would allow more time for education and preparation
- Delayed launch could attract more assets and investor interest
About Matt Hougan
Matt Hougan is the Chief Investment Officer at Bitwise Asset Management, a leading provider of cryptocurrency index funds. With his extensive experience in the industry, Hougan is recognized as an expert in digital assets and has played a significant role in shaping the cryptocurrency investment landscape.
Hot Take: Delayed Launch Could Benefit Spot Ether ETFs 🚀
While the initial deadline for spot ether ETFs is set for May, delaying the launch until December may prove to be a strategic move. Here’s why:
- Market Preparation: Giving Wall Street more time to understand and embrace Bitcoin allows for better market preparation and education.
- Increased Interest: A delayed launch could attract more assets and investor interest, resulting in a stronger market for spot ether ETFs.
- Building Trust: By allowing Wall Street additional time to digest Bitcoin, it builds trust and confidence in the cryptocurrency market.
The decision to delay the launch of spot ether ETFs until December aligns with the goal of ensuring a successful and well-received product. By giving Wall Street the necessary time to fully comprehend Bitcoin, the market can expect a more favorable reception when spot ether ETFs finally hit the scene.
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