CBOE Digital’s president, John Palmer, believes that numerous new institutional investors, such as pension funds and registered investment advisers, will invest in Bitcoin assets if the first spot exchange-traded fund for Bitcoin receives approval from US regulators.
Palmer emphasized that such approval would grant these investors access to Bitcoin assets in a manner not currently possible through direct Bitcoin purchases.
On Tuesday, Bitcoin’s value surged past $45,000, reaching a level not seen in nearly two years, as the US Securities and Exchange Commission (SEC) approaches a January 10 deadline to determine the fate of the proposed Bitcoin spot ETF.
Several prominent entities, including BlackRock Inc. and Fidelity, updated their applications last week in anticipation of this decision.
Additionally, Palmer foresees an expansion in Bitcoin derivative offerings following the approval of the spot ETF. He said, “Institutional players will lean on those derivatives more and more to hedge risks.”
The company is gearing up to introduce margined futures trading for Bitcoin and Ether on January 11, offering clients the ability to engage in futures trading without requiring full collateral upfront.
Also Read: Clock For First Spot ETH ETF Starts Following CBOE’s New Filings
