Key Points
- Grayscale anticipates the approval of crypto ETFs beyond Bitcoin and Ethereum.
- Industry experts believe the launch of an Ethereum ETF is inevitable, despite potential initial rejections.
David LaValle, the global head of ETFs at Grayscale, is confident that exchange-traded funds (ETFs) based on cryptocurrencies other than Bitcoin and Ethereum will be approved by regulators.
Positive Outlook on Crypto ETFs
LaValle expressed this belief during a recent roundtable discussion, stating that the digital asset market’s expansion and maturation will lead to the approval of more digital asset ETFs.
Despite significant outflows, Grayscale’s GBTC fund, which was converted to a spot Bitcoin ETF, remains the largest in the market.
Expectations for Ethereum ETF
There is a growing consensus among industry experts that the Securities and Exchange Commission will eventually approve Ethereum-based investment vehicles, despite expectations of initial rejections for spot ether ETF applications.
Matt Hougan, the chief investment officer at Bitwise Asset Management, believes that the approval of an Ethereum ETF is a matter of time.
Bitwise has also launched a spot bitcoin ETF and has filed an application for a spot ether ETF.
Simeon Hyman, ProShares Head of Investment Strategy, agrees with LaValle’s prediction, stating that the market will likely expand to include other cryptocurrencies.
According to the panel, ETFs have increased interest and exposure in digital assets, as they provide a safer and more convenient way for investors to allocate a small portion of their capital to digital assets.
LaValle added that the success of Bitcoin ETFs has led to more financial advisors considering adding Bitcoin to their clients’ portfolios.
