New Funds From Registered Investment Advisors May Positively Impact Bitcoin Demand
According to PANews, CoinShares research director James Butterfill stated that in the coming months, new fund inflows from registered investment advisors could lead to a positive demand shock for Bitcoin. A positive demand shock refers to a sudden surge in demand for an asset, such as Bitcoin, which could be triggered by a large influx of funds into a specific market.
Butterfill highlighted the dynamics that could potentially cause such an event and pointed out that spot Bitcoin exchange-traded funds (ETFs) have not yet been opened to the registered investment advisor market. He said, 'Typically, the fund platforms used by registered investment advisors require three months of trading data for newly issued ETFs before they can be included. Therefore, as the market opens up, there could be a significant amount of investment inflow from the registered investment advisor market.'
He emphasized that currently, only investment advisory firm Carsen Group allows trading in spot Bitcoin ETFs. Given that the registered investment advisor market has about $50 trillion in assets, the potential inflow of funds could be quite large. For example, if 10% of registered investment advisors choose to invest 1% of their portfolios, this could result in an additional inflow of around $50 billion.
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