Bitcoin is often regarded as an inflation hedge and store of value among investors. Most financial experts argue its superiority over USD and paperback currency. Three known financial figures recently attended a podcast named The Scoop to discuss the matter in detail. Frank Chaparro, the host of the podcast, invited Jeremy Schwartz from WisdomTree and Michael Batnick from Ritholtz Wealth Management.
The main reason for the appearance was to shed more light on a new cryptocurrency index started jointly by WisdomTree Wealth Management and Ritholtz. The Index is also powered by a third party called Onramp Invest. The main beneficiaries of the index are the financial advisors operating separately managed accounts or SMAs.
The fact that SEC has been discouraging a spot ETF for Bitcoin is no secret. Despite getting several applications from big financial institutions for a BTC ETF, the SEC has continued to delay the response. According to the remarks of SEC Chief Gary Gensler on this matter, the jury is still out on the topic. Meanwhile, the regulatory agency has also invited feedback from the masses on this matter.
According to Jeremy Schwartz, EVP and head of global investment at WisdomTree, the regulators in the USA are still not ready to deal with a BTC spot ETF. It is worth mentioning that a spot ETF is a type of exchange product that will directly trace the market value of the token like Bitcoin. Schwartz also claimed that a spot ETF is the most effective way to 100% allocation.
Speaking to the host of The Scoop podcast, Ritholtz research director Michael Batnick exclaimed that the cryptocurrency markets need to switch to a better marketing strategy for financial advisors. He quoted that in the current year, the number of cryptocurrency allocations in the average financial vehicle has increased by 9% since last year.
He further claimed that the number is expected to keep increasing. However, he suspects that due to the lack of proper marketing strategy and information channels for cryptocurrencies, many financial regulators remain cynical about the nascent asset class. He claimed that the products available to the financial advisors are unsuitable and need an upgrade.