According to The Block, Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that Bitcoin spot ETFs may have two catalysts before the end of the year, due to increased accessibility to more investors and platforms.
The first catalyst is “enabling Bitcoin spot ETFs to gain partial access and usage in the core of the financial advisory industry.” Balchunas stated to The Block that, to his knowledge, Bitcoin spot ETFs have not yet appeared on large investment platforms managing assets between $7 trillion and $10 trillion. These ETFs are expected to land on these platforms in the coming months.
Balchunas mentioned that, in addition to chain financial institutions, other large investment platforms such as Raymond James Financial and LPL Financial can also help expand the access range of ETFs. He also pointed out that many smaller platforms may follow suit.
The second catalyst for Bitcoin ETFs will be the launch of options trading for Bitcoin spot ETFs. He estimates that options based on Bitcoin ETFs will be available for trading before September.
In addition to options contracts, analysts also suggest that banks may develop structured products around ETFs, similar to what they did for Ark Invest. He added that another tool could be a 2x Bitcoin spot ETF that includes futures contracts. He said one or two of these leveraged ETFs could attract significant attention.
Furthermore, Balchunas also noted that as the Bitcoin ETF market matures, we may see new strategies, including covered call strategies, and innovative product combinations, such as products that hold both Bitcoin and short gold positions. These products aim to take advantage of relative price movements between Bitcoin and other assets like gold, providing investors with more diversified investment choices.
He predicts that market participants will conduct various experiments to find products that can attract investor attention and succeed. These successful products will help enrich the entire Bitcoin ETF ecosystem, providing more investment opportunities and strategies. Balchunas further stated that with the launch of these new products and strategies, there will be various structured and packaged trades formed around the current approximately ten core Bitcoin ETFs in the market, thereby enhancing market depth and breadth.
