Introduction of crypto-focused ETPs shows long-term faith in Bitcoin
Whether they face the Securities and Exchange Commission (SEC) crackdown or not, crypto-focused exchange-traded products (ETPs) have been on the rise recently, showing that funds are betting on bitcoin’s long-term prospects.
This comes despite the overall weakness of the crypto market in 2022, which has shown correlation with both stocks and bonds amid inflation fears.
“A growing number of funds are betting on the long-term appeal of bitcoin and ether, a cruel gambit in the depths of a crypto winter,” said a Reuters report, which noted that it has not dampened the desire to push more crypto-focused products into the market .
“Unfazed by a collapse in prices over the past 11 months, investment firms have unleashed a flurry of exchange-traded funds, anticipating that elite cryptocurrencies and their underlying technologies will ultimately prevail,” the report added.
Funds seem to see the forest for the trees. Overall, the long-term potential of bitcoin and other cryptocurrencies may be too good to miss even though the crypto market has been stuck in a recession for most of the year.
According to some market experts, this is all par for the course.
“Obviously when the market is slower, prices are lower, people have lost money, the intensity of appetite decreases,” said Chen Arad, co-founder of crypto risk monitoring firm Solidus Labs. “But that is not the case in the long run. As a whole, I don’t think anyone gives up.”
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For more news, information and strategy, visit Crypto channel.
