Evaluating the SEC's spot Bitcoin ETF approval, Goldman Sachs said that it will provide great benefits to institutional investors.
According to Coindesk, Goldman Sachs analysts said in a report that ETF approval has many benefits for institutional investors and will enable them to participate more actively in the crypto industry.
Benefits included “investor protection provided by ETFs, better liquidity compared to accessing BTC through private funds, greater margin for error compared to trusts given the ability to trade.”
“Through spot ETFs, investors will gain exposure to BTC without having to take on the risk of self-custody.
In addition, ETF providers such as Blackrock and Fidelity provide experience and reliability in ETFs, while also allowing investors to enter ETFs more easily.
But investors should also be careful about some potential disadvantages of ETFs.
Because the large institutional demand expected when ETFs begin trading may not occur at the same time. Long-term sustainable institutional demand for spot BTC ETFs will depend on the suitability of the ETFs and broader market adoption.”
Finally, analysts said that another disadvantage is that investors investing through ETFs will not be able to constantly follow and trade in ETFs because they do not physically own BTC.
At this point, analysts say, “ETF trading hours are limited to default market hours, unlike the 24/7 continuous trading available on cryptocurrency exchanges.” said.
*This is not investment advice.
