Excitement over the pending approval of Bitcoin ETFs that have so far failed to gain clearance from regulators has fueled speculation about the rapid growth of the crypto market. But speculation has actually been rising for months now. One of the most breathless predictions came from Brown Brothers Harriman (BBH).
in interview Aired on Bloomberg Podcasts May 15, host Eric Balchunas spoke with BBH Global ETF President Shawn McNinch. Discuss the results of BBH’s 10y Annual ETF Survey. Among the most amazing things? The growing acceptance of Bitcoin ETFs will propel them to as much as $30 trillion in global asset value over the next 10 years.
Brown Brothers Harriman bullish prediction
The market has been abuzz in recent days as Grayscale Investments and other players have publicly challenged regulators’ refusal to approve Bitcoin ETFs. But BBH pollsters have seen which way the winds have been blowing for months now.
McNinch placed the survey results in the context of the growing adoption of Bitcoin ETFs. And their dominant personality now.
“If you think about ETFs, they’re really core now, at the heart of a lot of investors’ allocation strategy. There’s more and more use of ETFs, more asset classes, more structures,” McNinch said.
It is difficult to question the BBH survey on methodological grounds. Results came from 325 respondents around the world. 40% of them manage assets of more than a billion dollars.
One of the most amazing results? 60% of the investors surveyed said they plan to increase their use of Bitcoin ETFs.
“It’s not just a negative product,” McNish said.
McNinch identified the “big three” of Bitcoin EFT transfers as those made available by Vanguard, BlackRock, and State Street Global Advisors. With such leading names in finance pinning their reputations and resources on product, it seems inevitable that Bitcoin ETFs will continue to be popular and will be part of the suite of products offered by asset managers across all profiles.
Increasing investor confidence
McNinch explained that Bitcoin ETFs did not start out at the top. He admitted that their mainstream acceptance was a process.
“Early on, people were really concerned about volume, making sure these products traded well,” he said.
But those concerns were eased in the face of the strong performance.
“Looking at the ETFs that are traded, it is almost a given that there are tight spreads, and investors can enter and exit the market in a cost-effective manner,” he said.
But MacNinsh warned that Europe and other regions may have a steeper hill to climb, given the “fragmented” nature of the exchanges.
“There’s fragmentation, 20 different exchanges in the European market, whereas in the US you have centralized liquidity on a few exchanges,” McNish continued.
“In Europe, there is a large over-the-counter market, so a lot of the volume is over-the-counter,” he added.
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