It’s a big day – the ProShares Bitcoin Strategy ETF (BITO) launched, giving everyone a chance to invest in cryptocurrency in one way or another. ETF Trends CEO Tom Lydon was on hand to discuss this Bitcoin event with Nicole Petallides of TD Ameritrade.

As stated, this event has been a long time coming, and it is very important. The financial advisor community has seen a growing interest from its clients to get into cryptocurrency, but the trust was not enough for a variety of reasons. Now, with an approved ETF, the ability is there to give an appropriate allocation to clients. Additionally, investors trying to save for retirement who may be concerned about inflation now have another option to turn to.

Going forward, when it comes to the potential of other products, Lydon points out that companies such as VanEck and Valkyrie will soon see futures products arriving as well. The big question is whether there will be “physically supported” versions, similar to GLD, for example, come to the market.

Gary Gensler, chairman of the SEC, isn’t too confident to see a version physically supported as quickly as the SFTC, which oversees the futures business, gives confidence but also comes from past history. With these areas that Gensler is comfortable in, Lydon thinks it’s hard to see Gensler providing similar support behind faster progress for this era of bitcoin. If anything, something could possibly happen in 2022.

Lydon adds: “For now it’s a great alternative. There is a strong correlation. There is some concern about the amount of space in the futures market, but we are watching it closely, and when it comes to launches, this bitcoin ETF is going to be in the top 10 of all ETF launches. .

Similar but different investments

Looking at other similar but different investments, products like Coinbase and Dogecoin, Lydon makes it clear that there are other ways to participate. Many crypto miners are publicly traded. Many thematic strategies in the form of ETFs exist, providing these other products for the portfolio. In addition, many publicly traded companies are in the blockchain arena, and companies that have adopted it will be able to take full advantage of this type of transactions which will be much more transparent in the future.

Focusing again on bitcoin, Lydon notes, “There is a lot of encouragement for Wall Street because, to a certain extent, it has been approved by the SEC, but it has been validated and we are monitoring very closely. “

As for Gensler’s involvement, Lydon believes he played a pivotal role in getting there. Gensler has taught topics on cryptocurrency and its future as a teacher. Having more responsibilities within the SEC meant taking a slower approach to properly assess the nature of this move. With that in mind, Lydon is confident that Gensler has done a great job of communicating with all issuers as things have progressed over time.

Lydon adds, “It wasn’t something that happened overnight. They’ve been working there for years.

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