Bitcoin, America gives the green light to Exchange Trade Funds

Cryptocurrencies, the SEC gives the green light to crypto investments

While Bitcoin is trading at its all-time highs and the ECB continues to maintain a rigid position on cryptocurrencies in general (an investment product of low seriousness, speculative and with “zero real value) something new is happening overseas. In fact, in the USA, while still not hiding many doubts, the Regulatory Authority has approved Exchange Traded Funds. ETFs offer advantages to investors: costs, accessibility and safety. Subsequently another ok started, and this time on Ethereum. All this has made it clear that cryptocurrencies in general are no longer, at least in the USA, just a “game” for strange people, the so-called “geeks”. In reality, ETFs have been a positive wind that has somehow made us forget months of failures, scams and millionaire collapses. While the founders of Binance and FTX went to prison, the sector needed reassuring news. And the SEC (the Market Regulatory Authority) helped the sector by giving the green light to the first spot bitcoin ETFs. Added to these was the new exchange-traded fund for the Ethereum cryptocurrency.

Cryptocurrencies, ok but still with some doubts

It is also true that this green light was given with an asetrisk, a precise “warning” “Bitcoin is mainly a speculative and volatile asset which is also used for illicit activities such as ransomware, money laundering, sanctions evasion and terrorist financing ”. Even in Europe, albeit slowly, the path is opening up. The doors were opened with ETPs (listed products, not funds) in 2019 and there are around 130 cryptocurrencies listed on the Paris, Amsterdam and Zurich stock exchanges. However, the real push will come in December, with the European regulation on cryptoassets (MICA). With this, crypto service providers will be able to carry out their business in the Old Continent without obtaining 27 different licenses. In the United States, however, investors seem to believe and this confidence can be seen in the quarterly declarations on fund assets. Over 600 institutional investors have positions in bitcoin. Among these is the Wisconsin state fund (160 million for bitcoin) out of 146 billion dollars in assets. The Midwestern state’s participation came through the world’s largest bitcoin ETF and the world’s strongest manager: Black Rock.

Cryptocurrencies, UBS has also invested in bitcoin

Pure UBS, Switzerland’s largest bank, has $145,000 in the bitcoin ETF managed by BlackRock. JP Morgan, Wells Fargo, BNP or Royal Bank of Canada have increased their investments in the sector. Small positions but significant for the change of pace. A new approach that one investor compares to “taking the training wheels off your bicycle while you’re learning to ride it”. According to some analysts, a traditional portfolio could have 60% variable income, 40% fixed income and 1% in bitcoin. And all this while the Old Continent prepares the launch of the digital euro.