Nate Geraci states these products are long in the underlying stocks or gold. These would now feature a short USD and long Bitcoin position using Bitcoin Futures offerings. The dual-faced model of these new ETFs made him call the prospective offerings “BTC hedged ETFs.”
Since spot Bitcoin and Ethereum ETF products secured approval from the U.S. SEC, there has been no slowing down in the number of filings.
While the number of crypto ETFs like Litecoin, Hedera, Solana and XRP ETF products has grown, asset managers are also intensifying how these offerings target traditional finance products more closely.
Geraci aptly observed that “Bitcoin is starting to eat tradfi.”
As noted, at least one big asset manager will allocate 2% of its Assets Under Management (AuM) to Bitcoin, underscoring the potential for the asset to go mainstream on Wall Street.
Already, many traditional firms are buying Bitcoin through ETFs, complementing the unrelenting acquisitions from spot buyers like MicroStrategy.
This article was originally published on U.Today
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