Just last year, the crypto-funds pipeline produced products with great success amid a historic boom for the digital-assets market, when Bitcoin added 60% in value on top of a 305% gain the year prior. Last year also saw the roll-out of the first Bitcoin futures funds in the US, which received a wild reception.
“Typically there are at least a few months in lag time between the planning of a launch and the actual launch of an ETF, so it makes sense that there was a launching frenzy around April and May, which is five to six months after the crypto market peaked and seemed euphoric,” said Seyffart at BI.
Matt Hougan, chief investment officer at crypto-focused Bitwise Asset Management, says that the 2020-2021 bull market attracted a lot of “tourist companies” to the space. Those companies are being winnowed in the current bear market, he said on Bloomberg’s “What Goes Up” podcast.
Still, “I suspect there’ll be more crypto ETFs in five years than there are today,” he said, adding that “long term, ETFs are going to be one of the primary ways that investors gain access to crypto, and I suspect long term, you’ll see significant flows into the space.”
This article was provided by Bloomberg News.