We all know how important the Bitcoin ETF issue is in the cryptocurrency market. Every time Bitcoin ETF news comes out, there is a revival in the market. It is noteworthy that different emphases came along during this revival. There are some recent statements. We wanted to draw attention to these statements. Here are the details
Bitcoin ETF topic
The topic of Bitcoin ETFs has gained significant popularity recently. On the other hand, asset management companies such as Fidelity and WisdomTree participated in the race started by BlackRock. However, applications by these companies were found insufficient by the SEC. There were also returns later on. Opinions from important representatives of the sector also drew attention. Bitwise’s Matthew Hougan’s views on the initial adoption of Bitcoin ETFs have become important lately.
According to Matthew Hougan, representative of Bitwise, the spot Bitcoin ETF market follows the principle of “winner buys most”. Numerous firms are vying for approval from the U.S. Securities and Exchange Commission. Also, only a limited number of companies will be successful. Hougan notes that ETFs generally operate on a “who earns the most” basis. On the other hand, he emphasizes that the first-entry company has amassed the majority of its assets and transaction volume. Next, runner-up ETFs face significant challenges competing against the first-to-market ETF.
Large and liquid ETFs
Hougan also explains that investors often prefer large and liquid ETFs to small and illiquid ones. As a result, secondary ETFs in the market have a hard time competing with the dominant ones. Currently, many firms are applying for spot Bitcoin ETFs, including well-known financial giants such as Fidelity and BlackRock, as well as smaller brands such as Valkyrie Investments, WisdomTree, and Invesco. In addition, Cathie Wood’s ARK and European asset manager 21Shares have also applied. However, Bitcoin ETF is among the conversations in the crypto industry, led by ARK.
Very different situations arise as the competition for spot Bitcoin ETFs intensifies. On the other hand, it becomes very important for companies to understand the dynamics of the “winner-takes” principle emphasized by Matthew Hougan of Bitwise. Only a limited number of ETFs are likely to succeed in this competitive market. However cryptocoin.com When we look at it as a whole, there is excitement in every Bitcoin ETF application. As we have emphasized from time to time, the acceptance of Bitcoin ETFs is very important for the influx of institutional investors in the cryptocurrency market.
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