Wall Street giants, such as Fidelity Investments and SkyBridge Capital LLC, are pressing forward with their pursuit of SEC approval for Bitcoin ETFs, despite the recent turbulence in the crypto currency markets. Fidelity has submitted its bitcoin fund prospectus to the SEC in early January, proposing to list the fund on the Nasdaq exchange. SkyBridge is also expecting to launch a bitcoin ETF in 2021, since the firm recently registered with the SEC to do so.
These investments could potentially provide much-needed stability to the highly volatile crypto markets. According to Prudential Financial Inc.’s head of ETFs, Matt Bartolini, the launch of bitcoin ETFs could add another layer of legitimacy to bitcoin as an asset.
The entrance of Wall Street and institutional players into the bitcoin exchange-traded fund (ETF) market is set to change the tide. While the SEC has yet to approve a Bitcoin ETF, the possibility of one being approved remains open. ETFs represent a much more secure way for investors to invest in cryptocurrencies, helping to shield them from the risks of direct buying and selling of cryptocurrencies.
Investment into the crypto-currency space is expected to increase in 2021, and a Bitcoin ETF could be the much-needed catalyst. Some analysts expect a Bitcoin ETF could spur $300 billion worth of investments into the cryptocurrency market and bring even more stability to the space.
