Sunday, July 3

US investors would bet on bitcoin if only a spot ETF existed

Key facts:
  • Investors from the United States often use bitcoin, but they also use other cryptocurrencies.

  • The US cryptocurrency market has been flooded with new tokens.

Who Said Financial Instruments Don’t Matter For Bitcoin (BTC)? Three-quarters of US investors could be exposed to BTC if only a spot exchange-traded fund (ETF) was available.

This according to a poll from the market analysis firm Grayscale, which details that 77% of the 1,000 investors surveyed for its report released on December 6, would be willing to consider BTC, but only if the instrument in cash, which curiously has been rejected by the monetary authorities, was an option to invest.

This sentiment, the firm explains, gained momentum from the fact that there are three bitcoin futures ETFs approved by the United States (US) Securities and Exchange Commission.

The arrival of a Bitcoin futures ETF, says the firm, “it was a positive development psychologically and sent the price of Bitcoin to a record”, a fact recorded by CriptoNoticias.

However, for the broader Bitcoin community, while the approval of those ETFs is positive, they prefer one in cash, that is backed by real bitcoin and not futures. “The futures-based Bitcoin ETF is a good start on the path to a broader future of adoption at scale,” they added.

“Without direct monitoring of the Bitcoin market price through a futures ETF, many agree that a Bitcoin spot-based ETF would present more benefits to the average investor,” they explain.

And they just took the opportunity to remember that they themselves are still awaiting the SEC’s decision on their proposal, el Grayscale Bitcoin Trust ETF, they qualify as the “world’s largest Bitcoin fund, to be converted into a spot ETF.”

77% of those consulted could invest in bitcoin if there was a spot ETF of the first cryptocurrency. Source: Grayscale.

Not everything is bitcoin

Grayscale’s report highlights that while bitcoin remains the most popular cryptocurrency in the US, there are other digital assets that are also taken into account by users.

“The cryptocurrency market has been flooded with new tokens, largely driven by the rise of decentralized finance (DeFi),” they note.

Even so, they insist, BTC maintains the leadership, with 99% of investors saying they are aware of the importance of the market pioneer cryptocurrency. 68% of these, in addition, affirm that they are already familiar with bitcoin.

“However,” they noted, “that does not mean that investors have not heard of other cryptocurrencies.”

“In fact, they are very aware of the other assets whose profiles are on the rise, including the cryptocurrency meme dogecoin (DOGE), which started as a joke but has since risen to fame,” they say.

More in detail, almost three-quarters of those consulted (74%) already knew about DOGE, exceeding the level of consciousness around ether (56%). Meanwhile, more than a quarter of investors already knew about Litecoin (LTC), Tether (USDT) and Cardano (ADA).

American users are also aware of other cryptocurrencies in addition to bitcoin. Source: Grayscale.

And following that line, according to Grayscale, most investors who have bitcoins, they also have another cryptocurrency. “Investing in cryptocurrencies is not a zero-sum game,” they state.

“Most of the investors who own bitcoin (87%) are also exposed to one or more alternative currencies, the so-called altcoins. Among the most popular is ether (ETH), the cryptocurrency of Ethereum, the reference platform for DeFi and NFT projects, as well as DOGE, ”they refer from Grayscale.

It is a fact that the presence of cryptocurrencies is growing in the United States. The interesting thing is that it happens just at a time when that country also concentrates much of the global cryptocurrency mining, contributing to the increased interest in Bitcoin.

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