In a CNBC interview on January 18, Ophelia Snyder, President & Co-Founder of 21Shares, shared her thoughts on the recently approved US-listed spot Bitcoin ETFs.
Investor Interest and Due Diligence
Snyder observed that investor inquiries about the new ETFs were somewhat unexpected, focusing significantly on the infrastructure of these products. She noted that there’s a misconception that all spot Bitcoin ETFs are alike, which is not the case. Her interactions revealed that investors are conducting thorough research and due diligence, diving deep into the operational aspects of these ETFs. This level of interest suggests a maturing understanding and approach toward crypto investments.
Early Stages of Spot ETF Adoption
Emphasizing the nascency of these products in the financial landscape, Snyder pointed out that advisors and platforms are still in the process of determining which products to offer their clients and how to integrate them effectively. She remarked on the need for these entities to educate themselves about the space, indicating that it’s “unbelievably early in the lifetime of these products.”
Fund Flow and Market Response
Snyder commented on the $250 million inflow into her fund over the week, as reported by Coin Shares. This response exceeded her initial expectations, indicating a higher level of excitement and interest than typical for a new ETF launch. She attributed this robust market response to a combination of pent-up demand and the culmination of a decade-long process to bring these products to market.
Volatility and Mainstream Adoption
Addressing concerns about volatility, Snyder confidently stated that Bitcoin, as an asset, performs well on a long-term, buy-and-hold basis and can significantly impact portfolios on a risk-adjusted return basis. She highlighted the ongoing shift in crypto’s role in mainstream finance, suggesting that these new ETF products are pushing Bitcoin into mainstream financial discussions, requiring people to form informed opinions on it.
Reaction to Established Financial System’s Views
Responding to a clip of Jamie Dimon’s skeptical remarks on Bitcoin at Davos, Snyder suggested that while Bitcoin might not be for everyone or suitable for all portfolios, its historical performance and potential benefits make it a relevant topic in the financial conversation. She acknowledged the varying opinions in the market, indicating that even as some major financial institutions like J.P. Morgan are adopting blockchain technology, skepticism about Bitcoin itself might persist among certain segments.
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