CBOE: "The launch of spot Bitcoin ETFs paves the way for investments by pension funds"

The launch of spot Bitcoin ETFs will bring a whole new wave of investment from institutional investors, John Palmer, president of Chicago Board Of Exchange (CBOE) Digital believes, writes Cointelegraph.

"The (no SEC approval of the ETF launch) will pave the way for pension funds and RIAs to be able to invest in spot Bitcoin ETFs," Palmer told Bloomberg earlier this week, adding that currently many institutions cannot take direct exposure to Bitcoin.

Registered Investment Advisors (RIAs) are financial companies, registered with US regulators and supervisors, that advise clients on investments in securities and can manage their portfolios.

The middle of next week is the deadline by which the Securities and Exchange Commission (SEC - the regulator of the American market) must give an answer regarding the approval of the request made by ARK Invest to launch the ARK Invest 21 Shares Bitcoin ETF, according to Cointelegraph.

Palmer expects that with the approval of spot Bitcoin ETFs, Bitcoin-backed asset derivatives will expand significantly. "Institutional players will increasingly turn to these derivatives to hedge their risks," the CBOE Digital president said, adding, "Retail will also look for this."

CBOE Digital is the crypto division of the Chicago Board Of Exchange, the largest options exchange in the United States, offering crypto futures and options for trading. Some investment funds have already taken steps to be able to gain greater exposure to spot Bitcoin ETFs once they are approved and launched.

On January 2nd, manager Advisors Preferred Trust adjusted the fund's prospectus so that it could invest up to 15% of its total assets to take indirect exposure to Bitcoin through Grayscale Bitcoin Trust shares, the ProShares Bitcoin Strategy ETF and futures contracts on Bitcoin, according to Cointelegraph.