ETFs have been in the U.S. market for more than 30 years. Everyone understands the products. It is simpler to buy assets in securitized products than to buy spot Bitcoin directly. Many investors believe that it is a better way to pay management fees and let others handle custody, settlement risks and other operational issues of Bitcoin transactions. They no longer need to bear these risks directly.

There are two things that keep institutions away from digital assets at the moment. One is philosophical. They don't believe in or like Bitcoin or cryptocurrencies. Then there is the second camp, whose risk/reward ratio is still not attractive enough. For these people, the success of ETFs makes it increasingly difficult for them to sit on the sidelines, especially when clients demand crypto products. #ETFvsBTC