Bitcoin ETFs Are Driving a Spot Multiplier Effect, Canaccord Says
Bitcoin exchange-traded funds (ETFs) are driving additional demand for the underlying cryptocurrency, according to a research report by broker Canaccord Genuity. The report noted a "material multiplier effect" from the ETFs in driving demand for bitcoin. Many investors, both retail and institutional, find the underlying bitcoin spot more attractive than ETFs due to more ways to hedge and generate yield over time as the asset class matures. In the coming months, spot bitcoin ETFs will be added to multiple registered investment advisor platforms and large broker/dealer wirehouses. Some institutions, particularly sovereign wealth funds, are likely already invested in bitcoin. New accounting standards and inflationary concerns could prompt more enterprises to consider bitcoin as an asset to hold on their balance sheets.
