Introduction
Asset manager Hashdex predicts that the first spot Bitcoin exchange-traded fund (ETF) will be available in the United States by the second quarter of 2024, with a spot Ether ETF to follow. This marks a shift in the narrative surrounding these products, from questioning their existence to anticipating their arrival.
Spot Bitcoin ETF Anticipated
Hashdex's U.S. and Europe head of product, Dramane Meite, stated in an outlook report that U.S. investors are expected to have access to a spot Bitcoin ETF by the second quarter of the new year. This suggests that the long-awaited approval for a spot Bitcoin ETF is on the horizon.
Spot Ether ETF to Follow
In addition to the spot Bitcoin ETF, Hashdex believes that a spot Ether ETF will likely be introduced in the U.S. market. This would provide investors with an opportunity to gain exposure to the second-largest cryptocurrency by market capitalization.
Approval Process
While there is optimism surrounding the approval of spot Bitcoin ETFs, analysts note that the process involves multiple steps. Bloomberg ETF analysts have assigned a 90% probability of approval in the days leading up to January 10, 2024, but emphasize that additional forms must be approved before an ETF can launch. This means that there may be a gap between approval and the actual launch of a spot Bitcoin ETF.
Unlocking a Lucrative Market
Meite highlights the potential of spot Bitcoin and Ether ETFs, stating that they would allow traditional asset managers to offer crypto products for the first time. This could tap into a market valued at $50 trillion, surpassing the combined markets of Europe, Canada, and Brazil. Currently, these three regions are the only global markets with spot crypto exchange-traded products.
Focus on Bitcoin and Ether
According to Meite, the majority of interest in single-asset ETFs is expected to revolve around Bitcoin and Ether. These cryptocurrencies have established name recognition and are seen as having little differentiation among existing incumbents.
