The imminent potential of a Bitcoin ETF backed by real assets has raised high expectations in the financial sphere, especially among institutional investors.
According to John Palmer, president of CBOE Digital, the approval of this exchange-traded fund could mark a crucial milestone by opening the doors for the participation of pension funds and other funds advised by RIA in direct investment, something that until now It has been inaccessible to them.
This approval On Bitcoin could mean more than just the entry of these funds into the cryptocurrency market
Palmer predicts a new wave of interest, both institutionally and among retail investors, in Bitcoin derivatives.
Furthermore, it suggests that these derivative products could see substantial growth if the real asset-backed ETF is approved.
The executive highlights that, if approved, institutional investors could turn even more derivatives as hedging tools.
However, it also expects an increase in retail investor interest in these investment options.
CBOE Digital, the crypto division of the Chicago Options Exchange, has concrete plans for the immediate future in the cryptocurrency market.
Margined BTC and Ether derivatives trading is projected to launch on January 11.
This step would allow investors to trade contracts without the need to provide full collateral, which could further energize the cryptocurrency derivatives market.
Additionally, he notes that some mutual funds have begun to adjust their investment strategies in anticipation of the approval of the ETF.
For example, Advisors Preferred Trust has modified its prospectus to allow up to 15% indirect investment in BTC through different financial vehicles such as the Grayscale Bitcoin Trust and Bitcoin futures contracts.
The possible approval of a Bitcoin ETF backed by real assets is seen as a turning point that could reshape the participation of institutional and retail investors in the world of cryptocurrencies, in addition to fostering significant growth in derivatives and other associated financial products with Bitcoin.