Institutional investors looking to engage in the cryptocurrency market have been frustrated by the Securities and Exchange Commission (SEC) of the United States’ repeated rejections of proposals for Bitcoin exchange-traded funds (ETFs). However, Wall Street behemoths won’t be excluded by the SEC’s judgment because they have other options for getting access to Bitcoin.
The use of Bitcoin ETFs sold on foreign exchanges is one way Wall Street behemoths can access the cryptocurrency. For instance, the Bitcoin ETF from ProShares and the Bitcoin ETF from Valkyrie are both traded on the Oslo Stock Exchange. US investors can access Bitcoin through these ETFs without actually buying the digital currency.
Contracts for Differences (CFDs) are another means by which Wall Street behemoths can access Bitcoin. With the use of CFDs, investors can speculate on the value of an asset without actually owning it. On a number of exchanges, including the CME Group and the CBOE Global Markets, bitcoin CFDs are traded.
Finally, Wall Street behemoths have access to Bitcoin via hedge funds. Cryptocurrencies are one of the many assets that hedge funds, which are financial entities, may invest in. Institutional investors can choose from among a number of hedge funds that invest in bitcoin.
Many institutional investors have been unhappy with the SEC’s decision to deny proposals for Bitcoin ETFs. The giants of Wall Street can still access bitcoin, though, through other methods. These options include hedge funds, contracts for differences (CFDs), and Bitcoin ETFs traded on international exchanges.
The SEC’s decision to turn down petitions for a Bitcoin ETF demonstrates the organization’s continued mistrust of cryptocurrencies. The SEC has still expressed its readiness to accept Bitcoin ETFs that adhere to its regulatory criteria. In the future, it’s conceivable that the SEC will authorize Bitcoin ETFs, facilitating investor access to the cryptocurrency.
Meanwhile, the aforementioned channels allow Wall Street behemoths to access Bitcoin. Although not in the same way as if they could, these avenues enable institutional investors to participate in the bitcoin market.
