Ten spot bitcoin exchange traded funds came to market last month, increasing access to the largest cryptocurrency for scores of advisors and investors. While that event is obviously pertinent to bitcoin itself, there are derivative beneficiaries.
Those may potentially include equity-based funds such as the Amplify Transformational Data Sharing ETF (BLOK). The actively managed BLOK is home to 55 holdings, plenty of which are described as “crypto-correlated.” That means when bitcoin, because it’s the largest digital asset, rises (or falls), some BLOK holdings feel the effects.
Spot Bitcoin ETFs Could Boost BLOK
In the U.S., spot bitcoin ETFs are roughly a month old. The jury is still out on how these funds are affecting the market for cryptocurrency. However, there are already signs that the new ETFs are providing fresh buying activity.
Over the long haul, that’s clearly a positive catalyst for bitcoin prices. It’s possible for dedicated bitcoin ETFs to benefit non-dedicated peers such as BLOK. Factors potentially add to the near-term case for BLOK. For example, while bitcoin prices have somewhat dithered following the debuts of the spot funds, professional investors see more substantial gains arriving over the next several months.
“Around 73% of professional investors expect Bitcoin to rise by 10% or more as a result of the SEC’s decision with nearly 1 in 10 predicting gains of 51% or more over the next six months, the study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $816 billion in assets found. The study was conducted when the price of Bitcoin was around $45,000,” according to a new survey by Nickel Digital Asset Management.