Bitcoin ETFs Are Driving a Spot Multiplier Effect, Canaccord Says

The hype surrounding the assets managed by bitcoin ETFs has grown significantly. However, it’s clear now that these ETFs are actually boosting the demand for bitcoin itself, according to Canaccord Genuity’s recent analysis.

Last Thursday, the broker organized its Digital Assets Symposium for 2024, welcoming heads of 29 crypto businesses in attendance.

“Joseph Vafi’s team of analysts are pointing out that ETF purchases are contributing to an increasing demand for Bitcoin itself,” or “ETF investments are leading to a noticeable boost in demand for Bitcoin according to the analysis of Joseph Vafi and his team.”

The broker pointed out remarks from Swan Bitcoin, a firm specializing in bitcoin investments, stating that they’re experiencing a significant surge in requests for direct bitcoin ownership as the demand for Bitcoin Exchange-Traded Funds (ETFs) pushes the price up, while the bitcoin supply remains relatively unchanged.

According to Canaccord, numerous investors, including retail and institutional ones, find the raw bitcoin market more appealing than Bitcoin ETFs. They believe that they may have more opportunities to protect against risk and earn income from their bitcoin holdings (HODLs) as the asset class evolves.

In the next few months, various bitcoin Exchange-Traded Funds (ETFs) are expected to become available on several Registered Investment Advisor (RIA) platforms and large brokerage firms. This increased accessibility is likely to make it necessary for investment advisors who previously paid little attention to bitcoin to form an opinion on the cryptocurrency. (Source: Report)

Certain sovereign wealth funds may have previously invested in bitcoin, and Canaccord Genuity anticipates that these institutions will make their investments public within the upcoming quarter.

Read more: Spot Bitcoin ETFs Are Just the Beginning for Wall Street