EY executive: Bitcoin ETF will trigger huge demand from institutions

2023-10-24 01:47:36

By Helen Partz, Cointelegraph; Compiled: Pine Snow, Golden Finance

Blockchain executives at professional service provider Ernst & Young (EY) said there is a lot of demand for bitcoin from institutional investors, but it still needs to wait for approval from spot bitcoin exchange-traded funds (ETFs) to trigger a buying rally.

Paul Brody, global head of blockchain at EY, believes that bitcoin faces a lot of pent-up demand from institutions due to US regulators not approving spot bitcoin ETFs for years.

Brody discussed the prospect of cryptocurrency adoption on CNBC’s Crypto Decrypted show on October 23, declaring that trillions of dollars of institutional funds are waiting to enter the bitcoin market once the bitcoin ETF is approved.

“But no other institutional fund has access to these things unless it’s an ETF or some other regulatory-backed activity,” said EY’s blockchain expert. He added:

"If you look at the people who buy bitcoin, they’re buying it as an asset. They do not buy it as a payment tool. Those who buy Ethereum do so as a computing platform for commercial transactions and DeFi (decentralized finance) services. ”

Brody’s comments come as global investors are closely watching the cryptocurrency regulatory process of the U.S. Securities and Exchange Commission (SEC), which has so far failed to approve a single spot Bitcoin ETF. Several companies, including Grayscale Investments, ARK Investment, BlackRock, and Fidelity, have filed applications for multiple Bitcoin ETF products with the SEC and are awaiting a response from regulators.

Grayscale won a lawsuit filed by the SEC over a spot Bitcoin ETF review in August 2023 and recently filed a Form S-3 registration statement with the SEC to list its Grayscale Bitcoin Trust on the New York Stock Exchange Arca.

According to Eric Balchunas, senior ETF analyst at Bloomberg, the recent amendments to the spot Bitcoin ETF by ARK Investments and 21Shares are “good signs” for the ETF’s progress and imminent approval. The ETF expert believes that the ETF amendment filed in mid-October 2023 could be a direct response to the SEC’s request to address some of the SEC’s concerns.

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