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QCP Capital, a digital asset-focused investment firm, does not expect spot Bitcoin exchange-traded funds (ETFs) to hit the market until 2024.
The investment firm said in an update that it had previously expected spot Bitcoin ETFs to hit the market by 2021, but that was before the U.S. Securities and Exchange Commission (SEC) began cracking down on leveraged ETFs. The SEC has stated that leveraged ETFs can complicate the settlement of derivative contracts, and has been pushing for greater oversight and regulation of these funds. QCP Capital now believes that this regulatory scrutiny will delay the arrival of spot Bitcoin ETFs until 2024.
The firm noted that while the path to a spot Bitcoin ETF does appear to be more difficult than initially anticipated, the long-term outlook remains positive. QCP Capital stated that the underlying blockchain technology is becoming more accepted by mainstream institutions and regulators are becoming more familiar and comfortable with the space. This is opening up the possibility of more active enforcement of the anti-theft laws associated with digital assets, which could be beneficial for adoption.
Furthermore, QCP Capital believes that the digital asset space is moving towards more standardized products. As more organizations create frameworks for the listing and trading of regulated products, it is becoming easier for investors to gain exposure to digital assets in a compliant manner. This increased level of compliance further bolsters the case for a spot Bitcoin ETF.