ETF Stands for ‘Everything That Fits’

As an analyst, I’ve observed the remarkable growth of ETFs in the market, and recently, BlackRock’s CEO Larry Fink acknowledged this trend by expressing his newfound appreciation for Bitcoin. In an interview with CNBC, he admitted, “Five years ago, my perspective was off base. Today, I believe Bitcoin qualifies as a legitimate financial asset.”

In simpler terms, although the assets managed through IBIT, BlackRock’s Spot Bitcoin ETF, represent only a tiny fraction of BlackRock’s overall asset management total (subtracting $18 billion from BlackRock’s $10.6 trillion AUM leaves $10.6 trillion), Fink’s endorsement adds credibility to bitcoin among baby boomer financial advisors, making it a more accepted investment option within portfolios.

So Bitcoin, at least in this way, is here to stay.

Moving forward, an Ether SPOT ETF is set to debut soon, potentially starting trading as early as next week. This new ETF is predicted to gain traction, though its impact may not rival that of the Bitcoin ETF in terms of scale.

And then after that? Well, Solana ETFs naturally.

Over a billion, 300 million, trillion, 300 million ETFs

Although I persistently believe that Bitcoin stands out among other cryptocurrencies due to its unique capabilities, it was an error to assume that this distinction held true for the financial elite, including high finance and Wall Street, as well as Exchange-Traded Fund (ETF) issuers.

The U.S. market for Exchange-Traded Funds (ETFs) is extraordinarily large. Refer to the data from the Investment Company Institute in the year 2023: a staggering $8 trillion in assets, 218 firms offering ETFs, and a total of 3,108 different ETFs! The appeal is evident. With ETFs, constructing a portfolio tailored to any investment perspective becomes effortless.

If you’re looking to invest in specific sectors such as healthcare or consumer discretionary goods, consider purchasing sector-focused Exchange-Traded Funds (ETFs) instead. For instance, if you’re young and eager to allocate a significant portion of your portfolio towards tech stocks, you can easily buy shares of Invesco’s QQQ ETF, which tracks the Nasdaq-100 index. Regardless of your investment strategy, there is an ETF tailored to fit your needs.

They even have ETFs for more amusing, potentially farcical, ideas.

If you’re young and eager to invest heavily in the Nasdaq-100 while aiming to grow your wealth threefold in a shorter timeframe, consider purchasing triple-leveraged exchange-traded funds (ETFs) such as TQQQ. This ETF functions similarly to QQQ but amplifies gains and losses by a factor of three. Keep in mind that this strategy involves higher risk due to the use of leverage.

If you’re looking to invest in an ETF that aligns with Jesus’ teachings, consider using the acronym WWJD, which stands for “What Would Jesus Do?” As for those who see virtues in vices and wish to invest in worldly indulgences, try the VICE ETF. Lastly, if you strongly disagree with Jim Cramer’s investment advice from CNBC, consider exploring the SJIM ETF, also known as the “Inverse Cramer ETF,” which followed the opposite of his recommendations (please note that this ETF is no longer available).

Considering the context, it’s clear that the idea of “The Bitcoin ETF being the sole ETF due to its superiority over others and the SEC’s recognition of this” was never a valid assumption.

Two years ago I wrote:

From a philosophical standpoint, the classification of cryptocurrencies as securities or not didn’t significantly impact my investment decisions then, and it doesn’t now. With the Bitcoin spot ETF finally available in the U.S., I can’t help but wonder what’s holding back an Ethereum ETF and those for other digital currencies. It seems like a natural progression, so let’s ponder: What are the factors preventing the potential issuance of a meme coin ETF?

As an analyst, I can explain it this way: Regulators’ approval of new crypto ETFs opens up a lucrative opportunity for ETF providers. We create these exchange-traded funds (ETFs), investors purchase them, and we manage them in return for fees – this is our core business model.

Despite the current appearance of the situation where an ETF is being proposed to hold assets that resemble ducks in both look and sound, I am confident that rational thinking will ultimately triumph amongst investors and regulatory bodies. This may even lead to the creation of a Duckley ETF as a result.

I’d like to share my perspective on the topic at hand, but I want to clarify that this viewpoint is mine alone and does not represent the official stance of CoinDesk or its affiliated entities. With over a decade of experience in the financial industry and having closely observed the evolution of digital currencies, I believe that… (continuation with personal insights and opinions).