There's been a lot of noise about how much assets under management (AUM), Bitcoin (BTC), and exchange-traded funds (ETFs) are accumulating, but it's likely that these ETFs are driving more demand for the underlying cryptocurrencies themselves. The broker said it is now clear that there are. Canaccord Genuity said in a research report on Monday.
The broker held its 2024 Digital Asset Symposium last Thursday, welcoming leaders from 29 crypto-related companies.
“It is becoming clear that there are also significant synergies emerging from ETFs in driving additional demand for the underlying BTC spot itself,” said analysts led by Joseph Vuffy. .
The broker noted comments from Swan Bitcoin, an investment advisor specializing in Bitcoin, stating that “While ETFs move the demand curve for Bitcoin to the right, the supply curve for Bitcoin is tilted to the right. “We expect demand for the underlying spot to increase many-fold.” Don't answer in kind. ”
Canaccord believes that many investors, both retail and institutional, prefer underlyings over ETFs given the potential for more ways to hedge HODL and generate yield over time as the asset class matures. I feel that BTC spot as an asset is more attractive.”
Spot Bitcoin ETFs will be added to multiple Registered Investment Advisor (RIA) platforms and major broker/dealer wire services in the coming months, and this additional distribution will make it easier for investment advisors to more or less ignore Bitcoin. “will be forced to ignore Bitcoin, at least going forward,” the report said.
Some institutions, particularly sovereign wealth funds, are likely already investing in Bitcoin, and Canaccord expects to hear from these types of investors in the coming months.
FASB's new accounting standards, coupled with continued inflation concerns, could prompt more companies to follow MicroStrategy (MSTR) and at least modestly consider BTC as an asset to hold on corporate balance sheets. The report added:
