BlackRock took the spotlight last month. bitcoin He had officially applied for his ETF and triggered a lot of excitement in the industry. In its latest research report, NYDIG stated that the arrival of the spot ETF could be a critical move for BTC investors.
While the Spot Bitcoin ETF is available in other parts of the world, it is not yet available in the US market. According to NYDIG estimates, there are currently $28.8 billion in combined AUMs (assets under management) in BTC investment products worldwide. Of these, $27.6 billion has been invested in spot products.
NYDIG cites positive reasons for a spot ETF as it will resolve some of the issues with current investment options in Bitcoin. An ETF will have better protections for investors and function as a reliable choice because of the BlackRock and iShares brand.
It will also be easier to trade, report positions, measure risks and tax through brokers. Compared to other options such as private funds or trusts, a spot ETF will likely come with better liquidity, fewer tracking errors, and possibly lower costs. However, there are no clear details about this at the moment.
NYDIG shared an interesting analogy between two asset classes, Bitcoin and Gold. Gold ETFs worldwide account for over $210 billion in AUM. About half of that AUM, $107.3 billion, is located in North America.
Except for El Salvador, BTC is not yet held by any central bank, making a clear difference between the two assets. However, BTC is held in private fpns to a greater extent than gold. Commenting on such different details, the company predicts a $30 billion inflow to BTC in the event of a spot ETF.
While NYDIG is bullish on the arrival of the spot Bitcoin ETF, other market participants disagree. Earlier this month, banking giant JPMorgan said that the spot Bitcoin ETF probably won’t have much impact on the market. The banking giant added that spot ETFs have not been very successful in overseas markets. So there is no reason for them to be successful in the US.
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