According to Cointelegraph, institutional investors are showing massive demand for Bitcoin (BTC), but are waiting for a spot BTC exchange-traded fund (ETF) approval to trigger a buying rally, says Ernst & Young (EY) global blockchain leader Paul Brody. He believes that Bitcoin faces pent-up demand from institutions due to United States regulators not approving a spot Bitcoin ETF for years.
Brody discussed the outlook for cryptocurrency adoption on CNBCâs Crypto Decrypted on Oct. 23, stating that trillions of dollars in institutional money are waiting to enter Bitcoin once a BTC ETF is approved. He added that institutional funds cannot invest in Bitcoin unless it is through an ETF or another regulatory-approved activity.
The U.S. Securities and Exchange Commission (SEC) has not approved a single spot Bitcoin ETF so far, with companies such as Grayscale Investments, ARK Investment, BlackRock, and Fidelity filing for multiple Bitcoin ETF products and awaiting a regulatory response. Bloomberg senior ETF analyst Eric Balchunas believes that recent amendments to the spot Bitcoin ETF by ARK Invest and 21Shares are a good sign of progress and impending approvals.
