Advisors May Drive Bitcoin ETF Flows, Says Needham
According to Needham, registered investment advisors (RIAs) will likely be the main driver of a bitcoin exchange-traded fund (ETF) if it’s approved in the US. Needham analyst John Todaro stated that most advisors expect 5%-10% of clients to own a Bitcoin ETF and that interest would likely increase if bitcoin prices continue to rise. The upcoming Bitcoin halving and potential rate cuts by the Federal Reserve are also contributing to investor enthusiasm. However, those who haven’t purchased bitcoin yet are currently unlikely to buy a bitcoin ETF.
US OFAC Fines Crypto Exchange $1.2M for Russia Sanctions Violations
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has fined CoinList Markets LLC $1.2 million for processing transactions on behalf of users residing in Crimea, which violated Russia/Ukraine sanctions. CoinList failed to capture users who claimed residence in Russia but provided an address in Crimea. The settlement amount reflects OFAC’s determination that CoinList’s conduct was non-egregious and not voluntarily self-disclosed. Companies must ensure that their compliance programs adequately incorporate customer information gathered during onboarding or through transactional information.
The Sandbox NFT Marketplace is Now Live on Polygon
The Sandbox, a popular metaverse game, has launched its non-fungible token (NFT) marketplace on the Polygon network. The marketplace is accessible to anyone who owns CATALYSTs and allows them to mint on the new Polygon marketplace with reduced fees. The Sandbox also introduced a secondary market for creators to resell ASSETs they didn’t create on this marketplace. LAND owners were gifted CATALYSTs, and users can acquire more CATALYSTs on the OpenSea marketplace.
WisdomTree Surpasses $100 Billion in Total AUM
Asset manager WisdomTree has announced that its total assets under management (AUM) have exceeded $100 billion globally. This milestone was achieved through 12 consecutive quarters of net inflows and strong organic growth. WisdomTree’s US AUM reached a record high of $72.8 billion, and its models are now available to over 65,000 financial advisors nationwide. The company also celebrates its successful expansion into Europe and the termination of its contractual gold payments obligation. Founder and CEO Jonathan Steinberg sees this achievement as just the beginning and is excited for what’s to come.
Hot Take: Advisors Play a Crucial Role in Bitcoin ETF Adoption
The approval of a bitcoin exchange-traded fund (ETF) in the US may heavily rely on registered investment advisors (RIAs). According to Needham, RIAs are expected to be the main driver behind ETF flows, as they currently face disinterest from clients regarding bitcoin investments. However, if bitcoin prices continue to rise, interest among advisors and clients is likely to pick up. While existing bitcoin holders prefer buying crypto on exchanges like Coinbase rather than through an ETF, potential new buyers would likely come from the RIA space. With RIAs playing a crucial role, their support could be instrumental in driving widespread adoption of bitcoin ETFs.
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