Big bank, brokerage interest in Bitcoin is ‘accelerating’, says ETF issuer Van Eyck

Appetite b Bitcoin At large financial institutions, including banks and brokerages, “it's accelerating” as more clients show interest in Bitcoin ETFs, said Matthew Siegel, head of digital assets research at VanEyck.

And as more institutions move closer to considering these offerings, the likelihood of seeing further adoption of this new asset class grows.

“We don't see an obstacle, we see an opportunity,” Siegel said in an interview. Decrypt.

Bitcoin's relationship with Wall Street has gone through its share of icy indifference to deep interest in the cryptocurrency's potential. Now, with bitcoin spot exchange-traded funds on the market—among them VanEck's Bitcoin ETF “HODL”—the relationship could be set to heat up again as more institutional clients show interest in investing in them.

By any measure, the performance of the Bitcoin spot ETF has been a historic success. He was alone on the first trading day. 4.5 billion dollar transactionA great start by any standards. Already, the three – Black Rock, Loyalty and most recently Arc Invest 21 shares– They have already accumulated more than 1 billion dollars in assets, Blackrock alone is now fair. More than 5 billion dollars.

VanEck, whose place ETF was among the 10 accepted Securities and Exchange Commission As of Jan. 10, it had about $175.7 million in assets under management, according to the filing. VettiFi.

Siegel described the ETF's entry into the market as a “cumulative success” for the record-breaking amount of revenue it attracted. These earnings have boosted Bitcoin's value, but it has been hampered since it moved out of grayscale from a trusted to a niche ETF. In these exits It's looking slow now.Siegel said it opened up “the potential to exceed expectations.”

Most of the trades being executed are concentrated in retail, Siegel said, something that is consistent with what other ETF issuers and analysts have reported. However, Siegel added that in response to increased demand, discussions are underway with banks and wirehouses to start offering ETFs to their clients.

Institutions like these are slow to offer these products to their clients' portfolios on demand unless specifically requested, Siegel said. A survey of financial advisors published in the sign of interest in entering Bitcoin Fellow ETF issuer Bitwise On January 4, 88% of respondents expressed interest in buying bitcoin on behalf of their clients after the ETF became available.

Competition among ETF issuers has been particularly fierce, with 10 players including Wall Street heavyweights such as BlackRock and Fidelity. This has inspired many to do so. Reduce future payments After ETFs went online in a bid to cancel each other out.

They are the business of these reductions It can affect profitability For issuers who may be delayed now. Siegel, whose firm has a 0.25% fee similar to its rivals, says it sees its current rate as “very competitively priced” and shouldn't be a barrier to further adoption.

Instead, the sigil is an important metric to look at instead. The price of BitcoinIt plays a role in how profitable any ETF is likely to be in the future.

“ETF issuers are less likely to close an ETF whose price has doubled,” Siegel explained. “So before we think about another price cut, we have to wait until the protection and other costs are reduced.”

of The price of Bitcoin It is currently at $52,480, the highest level seen since the last major price rally at the end of 2021.