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Bitcoin Races into Financial Establishment with ETF, Will it Strike Gold?

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Bitcoin is gaining popularity as an exchange-traded fund (ETF) that tracks its price is being introduced. The cryptocurrency has seen a significant increase in value in October, with investors hoping for regulatory approval for a spot bitcoin ETF. Market players have varying estimates on the potential success of the ETF, with predictions ranging from $3 billion on its first day to $55 billion over five years. Mainstream investment giants and crypto-focused firms have filed applications for spot bitcoin ETFs, but traditional investors remain skeptical.

Bitcoin, Cryptocurrency, ETF, Financial Establishment, Regulatory Approval, Spot Bitcoin, Market Players, Investment Giants, Crypto-Focused Firms, Traditional Investors

(Reuters) - Bitcoin, the original crypto rebel, is racing into the heart of the financial establishment with an exchange-traded fund that tracks its price. But will it strike gold?

Mainstream investment giants such as BlackRock and Fidelity, as well as crypto-focused firms like Grayscale, have filed applications for spot bitcoin ETFs. The U.S. Securities and Exchange Commission will be considering eight to 10 filings for new spot bitcoin products, its chair said on Thursday, without giving details of timing of decisions.

U.S. crypto firm NYDIG estimates demand for a spot bitcoin ETF at around $30 billion. Their calculation compares the sizes of the gold and bitcoin ETFs - $210 billion versus $28.8 billion, respectively - and adjusts them for their relative volatility. "If you look at the current market capitalization of GBTC - $3.2 billion – that's probably day-one demand" for a spot bitcoin product, he said.Some advocates say that financial advisers, pension funds and other money managers - a pool of capital estimated to total around $46.5 trillion by Boston Consulting Group - could be a significant source of demand for a spot bitcoin ETF.

However large demand turns out to be, it is unlikely to sustain offerings from all the asset managers vying for a slice of the action, said Steve Sosnick, chief strategist at Interactive Brokers. Shakedown or smart business? Quebec restaurants balk at hefty penalty for using competitor's payment machines

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