Crypto Spot ETFs Set to Shape Market Trends, Says Canaccord

Crypto Spot ETFs: The New Power Players in Market Dynamics According to Canaccord

Crypto Spot ETFs: The approval of Bitcoin (BTC) and Ether (ETH) spot exchange-traded funds (ETFs) is a positive development. Despite digital assets underperforming compared to traditional assets in the second quarter, the potential inflows from these ETFs could change the recent trends, according to a quarterly report from Canaccord Genuity on Sunday.

Spot ETFs to Play a Major Role in Crypto Price Dynamics, Analysts Say

Spot ETFs are anticipated to play a more significant role in the price action of cryptocurrencies, as stated by analysts led by Michael Graham. Although Bitcoin ETF inflows have slowed since peaking in February, institutional adoption is still on the rise. Over half of the world’s largest hedge funds are now trading or holding spot BTC ETFs, with major institutions only just beginning to disclose their holdings. Furthermore, the SEC may soon approve BTC ETF options.

Retail investors might also turn to ETFs to gain crypto exposure through individual retirement accounts (IRAs) and other tax-advantaged accounts. Bitcoin spot ETFs were first approved for trading in the U.S. in January this year.

Ether Spot ETFs Set for Summer Launch Pending SEC Approval

Ether spot ETFs are expected to launch later this summer, following the SEC’s approval of initial filings from issuers last month. The new products can start trading once the regulator endorses the S-1 filings. Despite uncertainties in the macroeconomic environment and the timing of any future interest rate cuts, favorable supply-demand dynamics post-halving could boost Bitcoin through ETF inflows, according to Canaccord.

Once trading begins, spot Ether ETFs could also positively impact the market and broaden institutional interest in other assets, benefiting the overall crypto ecosystem, the report added.

FAQ: Bitcoin (BTC) and Ether (ETH) Spot Exchange-Traded Funds (ETFs)

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