- ARK Invest CEO Cathie Wood believes wirehouses will only have interest in exchange-traded funds (ETFs) for top digital assets.
- In a new interview, Wood suggests that large broker-dealers will likely embrace only a spot Bitcoin (BTC) ETF and an Ethereum (ETH) ETF.
- Wood notes, “I don’t think the wirehouses will accept- there could be two, these two [BTC and ETH ETFs]. Maybe Solana. Maybe. But I don’t think that the wirehouse platforms will want to do more than the majors, just to give their clients exposure to this new asset class.”
Discover why major broker-dealers are eyeing Bitcoin and Ethereum ETFs, and what this could mean for the future of crypto investments.
Wirehouses’ Interest in Bitcoin and Ethereum ETFs
ARK Invest CEO Cathie Wood has recently highlighted the growing interest of major broker-dealers, or wirehouses, in exchange-traded funds (ETFs) for top digital assets. Speaking at the Consensus 2024 crypto conference, Wood emphasized that these large financial institutions are primarily focused on Bitcoin (BTC) and Ethereum (ETH) ETFs. This development marks a significant shift in the traditional financial sector’s approach to cryptocurrency investments.
Potential Launch of Ethereum ETFs
To date, only Bitcoin ETFs have been launched. However, there is increasing speculation that Ethereum ETFs could be introduced later this year. Crypto insiders believe that the approval of Ethereum ETFs could pave the way for ETFs of other digital assets. Wood’s insights suggest that while wirehouses may initially limit their offerings to BTC and ETH ETFs, there is potential for expansion to include other major cryptocurrencies like Solana.
Due Diligence and Market Readiness
Wood also pointed out that wirehouses are conducting thorough due diligence on Bitcoin ETFs. ARK Invest, which has launched its own Bitcoin ETF, is in discussions with major platforms such as Morgan Stanley, UBS, Merrill Lynch, and Wells Fargo. These platforms are rigorously evaluating the viability and security of Bitcoin ETFs before offering them to their clients. Wood believes that the detailed questions being asked by these institutions indicate a readiness to eventually include Bitcoin ETFs in their investment portfolios.
Conclusion
The growing interest of wirehouses in Bitcoin and Ethereum ETFs signifies a pivotal moment for the cryptocurrency market. As major financial institutions begin to recognize the potential of digital assets, the introduction of these ETFs could provide a more accessible and regulated entry point for investors. While the initial focus may be on BTC and ETH, the future could see a broader range of crypto ETFs, offering diversified exposure to this emerging asset class. Investors should stay informed and conduct their own due diligence as the landscape of crypto investments continues to evolve.
