Bitcoin ETF: Market Views Cement Towards an ETF “Standard” Over Bitcoin

The ETF market has been growing tremendously since 2003. The newest arrival to this ever-growing pack was when Bitcoin ETFs got their green signal from the SEC. Now, Bloomberg analyst believes that Bitcoin ETFs are going to be the “standard” as compared to Bitcoin.

Bitcoin ETFs to attract more people

Bloomberg analyst Eric Balchunas in a post on platform X expressed his views on the growing demands of ETFs. Balchunas believes that with the help of exchange-traded funds (ETFs), almost anything can trade like equity. An underappreciated benefit of ETFs is their standardization and convenience, he added.

Eric Balchunas has been a long sporter of ETFs and has been vocal about how they affect an investor’s assets. In another post, he supported a tweet that said ETFs are consuming the whole financial sector. The tweet further added the market is heading toward an “ETF Standard” rather than a “Bitcoin Standard.”

The tweet could loosely be implied as saying that the market is currently pricing more on ETFs than on Bitcoins. One possible reason for the same could be the regulated nature of ETFs as compared to Bitcoins. However, one factor to consider is that ETFs are volatile too, and react to different market parameters.

The ever-expanding ETF market

The ETF market has been growing for the past decade. Rather than being a passive income, they have increasingly become a means of investment and earnings.

Since they reflect investments from a cross-section of blockchain technology companies in diverse sectors, exchange-traded funds (ETFs) tend to react more in line with the larger trends in technology and the financial market.

As of today, total Market ETFs include 617 ETFs that are traded on American marketplaces. ETFs in America account for $1,790.85 billion in total assets under management currently.

When it comes to events that impact the cryptocurrency market, Bitcoin ETFs typically react differently than the broader financial or technological markets. The price of Bitcoin may be impacted by news about regulations, adoption by significant organizations, or economic events or issues in the cryptocurrency space that change investor perception of digital currencies.

Bitcoin ETF’s added advantage

The commencement of Bitcoin ETFs was a sign of the ongoing demand for exposure to Bitcoin in conventional investment vehicles. The growing maturity of the cryptocurrency ecosystem is reflected in the markets’ acknowledgment of digital assets as a viable asset class.

Purchasing a Bitcoin ETF gives power over the price of Bitcoin. Investment in ETFs does not involve registering on a cryptocurrency exchange or assuming the dangers associated with direct Bitcoin ownership. For instance, investors store their Bitcoins in wallets; if they forget the password to the wallet, their Bitcoins are permanently lost. However, this situation does not arise with Bitcoin ETFs since they trade on regulated exchanges.

As of right now, the live price of bitcoin (BTC) is $41791.0, and the 24-hour trading volume of cryptocurrencies is $11.9 billion. The price of Bitcoin (BTC) has decreased by 0.7% over the last day, and it is presently trading between $41944.5 and $41457.4. The current market capitalization of Bitcoin (BTC) is $819.5 billion.