Markets
Crypto Spot ETFs to Have More Influence on Market Price Movement: Canaccord
Bitcoin Approval (BTC) and ether (ETH) Cash exchange-traded fund (ETF) flows are encouraging, and while digital assets underperformed traditional assets in the second quarter, potential ETF inflows could reverse the recent trend, brokerage Canaccord Genuity said in a quarterly report released Sunday.
Spot ETFs are expected to become a more meaningful part of cryptocurrency price action, analysts led by Michael Graham wrote.
Canaccord notes that while Bitcoin ETF inflows have slowed from February highs, institutional adoption continues to grow and “over 50% of the world’s largest hedge funds now trade/hold BTC spot ETFs, large institutions have only just begun disclosing their holdings, and the SEC may soon approve BTC ETF options.”
Retail investors may also look to buy ETFs to gain exposure to cryptocurrencies through individual retirement accounts (IRAs) and other tax-advantaged accounts, the report said. Bitcoin spot ETFs were first approved for trading in the United States in January of this year.
Spot Ether ETFs expected to launch later this summer after SEC approved The first issuer filings came last month. The regulator must approve the S-1 filings before the new products can begin trading. Despite macroeconomic uncertainty and the timing of future interest rate cuts, “favorable supply-demand dynamics following the halving could contribute to ETF tailwinds for bitcoin,” Canaccord said.
Spot Ether ETFs, once they begin trading, could also have a positive impact and “should help broaden institutional appetite for other assets,” benefiting the broader crypto ecosystem, the report added.