Crypto ETFs Continue to Garner Interest Among Institutional Investors, Survey Reveals
According to a recent survey by Brown Brothers Harriman & Co, nearly half of the surveyed institutions plan to add crypto-related ETFs to their portfolios in 2023. This is slightly down from 54% the previous year, with 25% of respondents planning to increase their exposure this year compared to 33% last year. The report highlighted the impact of initiatives such as the EU’s Markets in Crypto Assets proposal that will reduce the risks associated with investing in crypto assets for fund managers. The survey had responses from 325 ETF-focused institutional investors, financial advisers, and fund managers with 40% of them managing over $1 billion in assets. The US and China showed a higher interest in adding crypto ETFs to portfolios at 55% and 58% respectively, compared to Europe’s 29%. While US fund issuers have not received approval from the SEC to launch a fund holding bitcoin directly, advisers looking to increase crypto exposure in client accounts plan to use equity ETFs or bitcoin futures ETFs. Bitwise’s Bitcoin Strategy Optimum Roll ETF selects futures contracts with the lowest level of contango, which appeals to investors. However, Bitwise is still hoping for a spot bitcoin ETF to be available once regulatory clarity is available.
Clever Robot News Desk 5th April 2023