Bloomberg Analyst: Two Major Catalysts for Bitcoin Spot ETF Bullish Sentiment Before Year End

Bloomberg Analyst: Two Major Catalysts for Bitcoin Spot ETF Bullish Sentiment Before Year End

Bloomberg Analyst: Two Major Catalysts for Bitcoin Spot ETF Bullish Sentiment Before Year End

According to a report by The Block, Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that the Bitcoin spot ETF may have two catalysts by the end of the year, which will open it up to more investors and platforms.

The first catalyst is “making Bitcoin spot ETFs accessible and available to the core of the financial advisory industry.” Eric Balchunas told The Block that, to his knowledge, Bitcoin spot ETFs have not yet appeared on large investment platforms managing assets of $7 trillion to $10 trillion. These ETFs are expected to land on these platforms in the coming months.

Eric Balchunas also mentioned that other large investment platforms such as Raymond James Financial and LPL Financial, in addition to chain financial institutions, can help expand the access range of ETFs. He also pointed out that many smaller platforms may follow suit.

The second catalyst for Bitcoin ETFs will be the launch of options trading for Bitcoin spot ETFs. He estimated that options based on Bitcoin ETFs will be available for trading before September.

In addition to options, the analyst also stated that banks may develop structured products around ETFs, similar to what they did for Ark Invest. He added that another tool would be a 2x Bitcoin spot ETF that packages futures contracts. He said that one or two leveraged ETFs like this may attract significant attention.

Furthermore, Eric Balchunas also pointed out that as the Bitcoin ETF market matures, we may see new strategies, including covered call strategies, and innovative product combinations such as products that simultaneously hold Bitcoin and short gold. These products aim to take advantage of the relative price movements between Bitcoin and other assets such as gold, providing investors with more diversified investment options.

He predicted that market participants will conduct various experiments to find products that can attract investor attention and be successful. These successful products will help enrich the entire Bitcoin ETF ecosystem, providing more investment opportunities and strategies. Eric Balchunas further stated that with the launch of these new products and strategies, various structured and bundled trades will be formed around the current approximately ten core Bitcoin ETFs in the market, thereby enhancing the depth and breadth of the market.