Grayscale’s head of ETFs is optimistic that regulators will eventually have to approve exchange-traded funds based on cryptocurrencies other than Bitcoin and Ethereum.
Grayscale’s global head of ETFs, David LaValle, was asked during a roundtable discussion Wednesday whether he thought exchange-traded funds based on other cryptocurrencies could gain approval in the next two to three years.
“I think it’s 100%,” he said. “The path to digital asset ETFs was through regulated markets on the futures side, but as the digital asset market as a whole continues to expand and mature, we have already proven that we can do this. bitcoin BTC
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(And) we’re having really fruitful conversations. Ethereum 
ETH
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.”
A roundtable discussion on ETFs and digital assets in which LaValle participated on Wednesday was hosted by the New York Stock Exchange and moderated by Nate Geraci, president of The ETF Store.
Grayscale’s GBTC fund, a converted spot Bitcoin ETF, began trading in January and remains the largest on the market despite billions of dollars in outflows. Industry insiders expect applications for a spot Ether ETF to be rejected next month, but there is a growing consensus that the Securities and Exchange Commission will eventually approve the Ethereum-based investment vehicle.
Cryptocurrency ETF era
“Whether approved in May or later, we believe the launch of an ETF has proven lower costs and improved protections for investors seeking access to this asset class, so an Ethereum ETF is a matter of when and if. I think.” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management, who also attended the roundtable.
Following the application for a spot Ether ETF, Bitwise also issued a spot Bitcoin ETF.
Simeon Hyman, head of investment strategy at ProShares, also attended the roundtable and echoed LaValle’s thoughts about the market eventually expanding to include other cryptocurrencies. “I can’t imagine that there won’t be another currency of sufficient size and scale that we can all participate. That has to happen,” he said. Like Grayscale and Bitwise, ProShares also manages a spot Bitcoin ETF.
Hougan said he is optimistic about the approval and launch of new ETFs based on various digital assets in the long term. “We have entered the era of cryptocurrency ETFs, and we will use this cool packaging to give people what they want.”
The roundtable seemed to agree that allowing investors to bet on digital assets like Bitcoin through ETFs instead of requiring them to buy them directly has increased interest and exposure.
According to the panel, more investors are now considering investing a smaller portion of their available capital in digital assets, and ETFs offer a safer and easier way to do so.
“The (spot bitcoin) ETF coming to market has forced a conversation in which advisors and financial professionals have had to have an opinion,” LaValle said. He also added that the success of Bitcoin ETFs is causing more advisors to seriously consider adding Bitcoin to their clients. portfolio.
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