Why is the listing of Bitcoin ETF important for institutional investors?

3 answers

• Dec 17, 2021 · 3 years ago
  Institutional investors view the listing of Bitcoin ETF as a significant development in the cryptocurrency market. It provides them with a regulated and easily accessible way to gain exposure to Bitcoin without the complexities of directly owning and storing the digital asset. This increased accessibility can attract more institutional capital into the market, potentially leading to increased liquidity and price stability for Bitcoin.
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• Dec 17, 2021 · 3 years ago
  The listing of Bitcoin ETF can also help institutional investors overcome some of the regulatory and custodial concerns associated with investing in cryptocurrencies. By investing in an ETF, they can rely on the expertise of the fund manager to handle the custody of the underlying Bitcoin holdings and ensure compliance with regulatory requirements. This can alleviate some of the operational and security risks that institutional investors may face when directly investing in cryptocurrencies.
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• Dec 17, 2021 · 3 years ago
  Moreover, the listing of Bitcoin ETF can provide institutional investors with a more efficient and cost-effective way to gain exposure to Bitcoin. Instead of setting up separate accounts on multiple cryptocurrency exchanges, they can simply buy shares of the ETF on traditional stock exchanges. This streamlines the investment process and reduces the administrative burden for institutional investors, making Bitcoin investment more accessible and attractive to them. BYDFi, a leading digital asset exchange, recognizes the importance of Bitcoin ETF for institutional investors and is actively working towards supporting the listing of such ETFs on its platform.
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