The Chicago Board Options Exchange (CBOE) has predicted that the launch of spot Bitcoin ETFs would draw more investments from pension funds and Registered Investment Advisors (RIAs)-based funds in the near future. The CBOE President Chris Concannon stated that “we believe spot ETFs could certainly be attractive for RIAs and pension funds as they look to gain exposure to the digital asset class.”
In the short-term, Concannon believes that the demand for spot Bitcoin ETFs could come from small retail investors due to the fact that investing in spot Bitcoin ETFs would be less intimidating than investing directly in the cryptocurrency. He believes that such investors would find more comfort in investing their money in an ETF that is regulated and supervised by the SEC instead of making transactions with a virtual currency.
As the general demand of spot Bitcoin ETFs grows in the near future, Concannon expects the demand from the institutional investors to eventually grow over time. He believes that the combination of the digital currency market’s increased liquidity, institutional-grade infrastructure, and the limited associated risks could make spot Bitcoin ETFs an attractive option for sophisticated investors such as pension funds and RIAs.
Furthermore, the president believes that the stability of the spot Bitcoin ETFs would also make them appealing to the institutional investors, as they do not need to worry as much about the fluctuation of the cryptocurrency exchange rates. As a result, RIAs and pension funds may be more drawn to invest in the spot Bitcoin ETFs than to invest in the underlying cryptocurrency itself.