Updated 25 Oct, 2021

Demand For Bitcoin ETFs Continues, Signaling Broader Adoption



Key Takeaways:

  • Growing demand for crypto products on Wall Street defines the fourth quarter
  • Now that two Bitcoin ETF products are in the stock market, investors call for more

Bitcoin ETFs Pave the Way Toward Broader Adoption

Wall Street has now opened its doors to the fast-developing cryptocurrency industry that boasts a market cap of over $2.6tn. The first crypto-linked products to join traditional markets were two Bitcoin futures funds.

More precisely, the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF began trading last week. The investment vehicles will serve a major purpose on Wall Street. On the one hand, they will introduce access to speculating with the price of Bitcoin.

And on the other hand, the launch of Bitcoin-focused products on the $51tn stock market is a major milestone towards crypto adoption. That said, for the first time in history, US investors are enabled to hold a bitcoin-linked stock in their portfolios.

New Crypto-Focused Products Expected on Wall Street

The warm welcome from Wall Street mainstays, analysts point out, shows cryptocurrencies are well-positioned to benefit from broader acceptance. Not only that, investors are hungry for crypto bargains and eager to get a piece of the digital asset market.

In addition, the successful debut of Bitcoin ETFs highlights the accommodative stance from financial regulators toward digital assets. In more detail, the Securities and Exchange Commission, headed by Gary Gensler, has acknowledged cryptos are too big to ignore.

To illustrate, the ProShares Bitcoin futures ETF reached almost $1bn in traded shares on its first day of trading. With that in mind, retail investors contributed by less than $150m, or 15%, of all the buying that happened. In other words, institutions are showing strong appetite for exposure to the crypto industry.

The historic move of cryptos to Wall Street is expected to significantly expand the presence of digital currencies in traditional markets. Furthermore, analysts project many new crypto-focused products will be in the broader market by the end of the year.

Are you ready to join the crypto revolution? Head over to our guide on buying crypto where you will learn all you need to know about purchasing crypto.

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