1. BITBILIHome
  2. Article

NYDIG study reveals massive potential for Spot Bitcoin ETF, bridging the gap with Gold

• 102 views

TL;DR Breakdown

  • NYDIG’s Greg Cipolaro explores the potential impact of a spot Bitcoin ETF on the financial industry.
  • Comparisons to the gold market reveal Bitcoin’s higher proportion of supply invested in alternative fund forms.
  • Cipolaro predicts nearly $30 billion in demand for a Bitcoin ETF based on volatility equivalents with gold.

Description

Greg Cipolaro, the Global Head of Study at NYDIG, has delved into the future of Bitcoin and its potential impact on the financial industry. Cipolaro’s research specifically focuses on the eagerly anticipated spot Bitcoin Exchange-Traded Fund (ETF) and the revolutionary effects it could have on the BTC market. Before exploring the profound ramifications of a … Read more

Greg Cipolaro, the Global Head of Study at NYDIG, has delved into the future of Bitcoin and its potential impact on the financial industry. Cipolaro’s research specifically focuses on the eagerly anticipated spot Bitcoin Exchange-Traded Fund (ETF) and the revolutionary effects it could have on the BTC market.

Before exploring the profound ramifications of a spot ETF, it is crucial to recognize the paramount importance of investing in Bitcoin as it currently stands. While the United States has yet to introduce a spot ETF, other investment structures have emerged, accumulating an astounding $28.8 billion in assets under management (AUM). These include the Grayscale Bitcoin Trust (GBTC), futures-based ETFs, spot-based ETFs outside the US, and private funds.

Of this impressive AUM total, a staggering $27.6 billion comprises spot products. Despite this substantial figure, Cipolaro argues that a spot ETF may hold the key to overcoming the limitations of existing alternatives.

Among the potential benefits of a spot ETF, Cipolaro highlights improved investor protections, leveraging the familiarity of renowned entities such as BlackRock and iShares. Additionally, trading liquidity would increase while tracking errors and expenses would be significantly reduced compared to certain existing funds. Although exact fees for a spot ETF remain unclear, Cipolaro asserts that a substantial market demand exists.

To gauge the level of interest in a spot Bitcoin ETF, Cipolaro draws a parallel to the gold market. Currently, gold ETFs boast a total AUM exceeding $210 billion, with approximately half ($107.3 billion) allocated in North America.

Comparatively, only 1.6% of global gold investments are held in ETFs, compared to 4.9% of Bitcoin funds. This reveals that Bitcoin already has a larger proportion of its supply invested in alternative fund forms than gold.

When examining private investments, the ratio becomes even more favorable. While gold ETFs receive 7.4% of private capital allocation, Bitcoin funds secure 4.9%. Notably, coins and bars dominate private gold investment, representing 92.6%.

The statistics underscore a startling fact: gold funds currently attract over $210 billion in investments, while Bitcoin funds have garnered only $28.8 billion.

Cipolaro’s research predicts the potential demand for a spot Bitcoin ETF based on a volatility equivalent between Bitcoin and gold. Given Bitcoin’s greater volatility (around 3.6 times more volatile than gold), investors would require 3.6 times fewer Bitcoin than gold in dollar terms to achieve the same risk exposure. Consequently, this would drive nearly $30 billion in demand for a Bitcoin ETF.

Hence, with the substantial market appetite for a spot Bitcoin ETF and its potential benefits, the cryptocurrency world eagerly awaits regulatory approval and the subsequent launch of this groundbreaking investment vehicle.

Experts anticipate that such a development could bridge the gap between Bitcoin and gold, unlocking new avenues for seasoned investors and those seeking to explore the world of digital assets.

As the financial landscape continues to evolve, the advent of a spot Bitcoin ETF promises to reshape the investment sphere and further solidify Bitcoin’s position as a key player in the global economy.

Moreover, introducing a spot ETF could pave the way for increased mainstream adoption of cryptocurrencies, opening doors for individuals and institutions alike to participate in this rapidly growing asset class.

As the Bitcoin revolution accelerates, market participants brace themselves for the transformative impact of a spot ETF, transcending boundaries and unlocking the true potential of digital currency investments.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:NYDIG study reveals massive potential for Spot Bitcoin ETF, bridging the gap with Gold

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月20日 19:11
Next 2023年7月20日 20:08

Related articles

  • Crypto-centric public firms exceed Q2 profit estimates

    TL;DR Breakdown Crypto-focused public companies, including MicroStrategy, Block, Coinbase, CoinShares, and Robinhood, exceeded Q2 profit estimates. MicroStrategy reported a net income of $22.2 million, a significant shift from a net loss of $1.1 billion in Q2 of 2022. Block posted a 34% year-on-year increase in Bitcoin revenue, reporting $2.4 billion in Bitcoin sales. Description When one pictures the financial landscape of the second quarter, the visage of cryptocurrency-focused public companies brimming with increased revenue and significant profit leaps is unmistakable. While the polarizing world of cryptocurrencies continues to be an exhilarating roller coaster ride, one undeniable takeaway is the hefty returns it has awarded to those who have bet … Read more When one pictures the financial landscape of the second quarter, the visage of cryptocurrency-focused public companies brimming with increased revenue and significant profit leaps is unmistakable. While the polarizing world of cryptocurrencies continues to be an exhilarating roller coaster ride, one undeniable takeaway is the hefty returns it has awarded to those who have bet on its ascendancy. Staunch Cryptocurrency Proponents Reap Rewards Leading the pack of the…

    Article 2023年8月8日

  • Russia embraces crypto amid international sanctions and rising cyber threats

    TL;DR Breakdown As economic sanctions and cyberattacks amplify, Russia is turning towards cryptocurrency as a potential safeguard. Financial entities like Rosbank are innovating with crypto-based solutions, including a cross-border payment system. Amid an escalating geopolitical climate and intensified cyberattacks from Ukrainian hackers, the trend of increased crypto usage in Russia is likely to continue. With sanctions biting hard and cyberattacks causing havoc, Russia is increasingly turning towards cryptocurrency as an economic safety net. The rate of cryptocurrency use in the country rose to 14% in 2023, an increase of 4%, and quadruple the growth rate of the US, according to a recent survey by Statista. In contrast, the US user rate grew by only 1%, reaching 16%. The harsh impact of international sanctions drives the surge in Russian crypto use. To bolster the rouble, the Bank of Russia has restricted the withdrawal of US dollars, a common tactic deployed by nations facing monetary crises. Meanwhile, the decline in US dollars and Euros flowing into Russia has seen a crypto boom, despite the country’s stringent attempts to ban such activities. Despite…

    Article 2023年6月9日

  • Binance clients rally behind enigmatic representative ‘Eeon’ in SEC lawsuit

    TL;DR Breakdown Representative “Eeon” has emerged, claiming to speak on behalf of Binance clients in a securities lawsuit. Eeon and affected consumers argue that the court’s decision did not adequately consider their interests. The lawsuit involves indictments filed against Binance with the SEC, aiming to limit the exchange’s access to U.S. funds. Description In an unexpected turn of events, a representative named “Eeon” has emerged, claiming to speak on behalf of Binance clients and intervening in a securities lawsuit involving the popular cryptocurrency exchange. Eeon and the affected consumers argue that their interests were not adequately considered in the court’s decision, which designated them as “Customers” in an … Read more In an unexpected turn of events, a representative named “Eeon” has emerged, claiming to speak on behalf of Binance clients and intervening in a securities lawsuit involving the popular cryptocurrency exchange. Eeon and the affected consumers argue that their interests were not adequately considered in the court’s decision, which designated them as “Customers” in an order on June 17, 2023. The matter concerns indictments filed against Binance with the…

    Article 2023年7月15日

  • BRICS finally abandons USD for global trade settlement

    TL;DR Breakdown BRICS plans to abandon the U.S. dollar for global trade, using local currencies instead. This initiative aims to boost local economies and assert independence from Western economic influence. An upcoming summit in Johannesburg will discuss expanding the alliance and defining guidelines for new members. Description The line has been drawn in the sand, and BRICS nations have made a stand that could shake the global financial landscape. The alliance of Brazil, Russia, India, China, and South Africa (BRICS) is putting forth an initiative to abandon the U.S. dollar for global trade, opting instead to strengthen their local economies through cross-border … Read more The line has been drawn in the sand, and BRICS nations have made a stand that could shake the global financial landscape. The alliance of Brazil, Russia, India, China, and South Africa (BRICS) is putting forth an initiative to abandon the U.S. dollar for global trade, opting instead to strengthen their local economies through cross-border transactions using local currencies. This decision, aimed at keeping their native currencies in control, marks a turning point that could…

    Article 2023年8月4日

  • LUNC Developer Claims Sabotage by Single Actor – Terra Classic’s Ambitious Restoration Plans

    TL;DR Breakdown An early LUNC developer, Tobias Andersen, asserts that a single actor, possibly supported by Binance and KuCoin, is deliberately hindering the Terra Classic protocol’s growth and causing doubts about its potential to regain value. Despite setbacks, the Terra Classic community remains committed to revitalizing the token through the consistent burning of LUNC tokens and a drive to enhance utility with various innovative products and services. Description In a surprising revelation, an early contributor to the Terra Classic (LUNC) protocol, Tobias Andersen, has come forward with a bold claim that a single actor is sabotaging the token’s growth. This alleged manipulation has led to doubts about LUNC’s potential to regain its former value. Despite challenges, the Terra Classic community remains determined to … Read more In a surprising revelation, an early contributor to the Terra Classic (LUNC) protocol, Tobias Andersen, has come forward with a bold claim that a single actor is sabotaging the token’s growth. This alleged manipulation has led to doubts about LUNC’s potential to regain its former value. Despite challenges, the Terra Classic community remains determined…

    Article 2023年7月25日
TOP