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The CEO of 21Shares describes the Bitcoin ETF in the United States.

According to a statement released by 21Shares CEO, "we are certain of the fact that this spike will continue as more markets adopt cryptocurrencies, and in the acceptance and development of the Crypto ETF Europe will be at the forefront.”

13-May-2022 By: Sudeep Saxena
The CEO of 21Shares

By the conclusion of the first quarter, total assets placed in crypto ETFs and ETPs had hit $16.3 billion, but the market is still waiting for a Bitcoin ETF in the United States.

Despite the rapid growth of cryptocurrency Exchange-Traded Funds around the world, the world trade community continues to wonder when a spot Bitcoin ETF would be launched in the United States.
Following years of rejection by the US Securities and Exchange Commission, some ETF analysts believe a spot Bitcoin ETF could become a reality around mid-2023.
Regarding the SEC's obvious aversion to such a product, industry players such as Grayscale remain in the lobby for a spot BTC ETF.
The possibility of the SEC adopting a spot Bitcoin ETF is one of the most awaited events in the community for a variety of reasons.
A spot Bitcoin ETF, according to 21Shares CEO Hany Rashwan, would allow professional and retail investors who are presently barred from the crypto market to participate.
According to the 21Share CEO, “institutional investors are constrained on the institutional flanks because of investment restrictions and legal uncertainty.”
"One of the reasons for the novice to crypto trading is digitalized ecosystem and the creation of a wallet and trading on international exchanges and venues." "Investing in an ETF to have exposure to cryptocurrency would address these issues," Rashwan remarked.
He noted that the new investment vehicle comes with its own set of concerns, but "this is also true for the other same products."
According to 21Shares CEO, one of the significant differences between holding cryptocurrencies and crypto ETFs is that traders can purchase and sell the ETF via a commercial bank or broker into preexisting investing or trading portfolios.
A total of $16.3 billion assets invested in crypto ETFs
While the SEC has yet to authorize a pure Bitcoin ETF in the United States, such investment products are becoming much more prominent in other nations. In February 2021, Canada introduced its first-ever Bitcoin ETF, the Purpose Bitcoin ETF, becoming one of the first countries in the world to do so.
On May 12, three new spot cryptocurrency ETFs are anticipated to start trading in Australia, including a BTC ETF from Cosmos Asset Management and BTC and Ether ETFs from 21Shares.
Aside from basic asset-based ETFs, there is a broad array of ETFs linked to asset swaps such as futures or agreements merging stocks of important crypto businesses.
According to data compiled by the ETF research firm ETFGI, total assets registered in crypto ETFs and exchange-traded products hit $16.28 billion by the end of Q1.
According to a statement released by 21Shares CEO, "we are certain of the fact that this spike will continue as more markets adopt cryptocurrencies, and in the acceptance and development of the Crypto ETF Europe will be at the forefront.”
"The main implications are that bitcoin is becoming a more essential part of portfolio diversification and that investors prefer to do so via ETFs for the reasons stated above – instant access, cost-efficiency, and accountability."
Since its inaugural crypto ETP in 2018, 21Shares has released a total of 31 cryptos ETPs, with listings on major stock exchanges in Frankfurt, Zurich, Paris, and Amsterdam. The company has also intended to create a spot Bitcoin ETF in the United States, filing with the Securities and Exchange Commission in June 2021 for the ETF with Ark Investment Management. On March 31, the SEC formally denied the ETF application.



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