Some Crypto Pioneers Steer Clear As The Spot Bitcoin Race Intensifies

The crypto industry showed some enthusiastic signs as the race for spot Bitcoin ETF intensified.Several prominent companies have indicated interest in Bitcoin exchange-traded funds, with many applications awaiting the final approval stage from the regulators.

However, some pioneering firms within the crypto and blockchain industry seem less concerned. They've completely avoided stepping into the realm of spot BTC ETF.

Some Pioneer Crypto Companies Avoid Spot Bitcoin ETF

With the growing hype surrounding spot Bitcoin ETFs, the crypto industry has been bubbling with expectations.Notably, the crypto space looks forward to getting regulatory approval for the heap of ETF applications on the desk of the US Securities and Exchange Commission (SEC).

Amid the high expectations on spot Bitcoin ETFs, some crypto pioneers have not shown any interest in the product.These include top companies like Roundhill, ProShares, and Amplify Investments, which decided to be on the sideline over spot BTC ETFs.

Despite the small number of skeptical firms on BTC ETFs, the field still has large and smaller players.However, those passive interests suggest that hype and sentiment surrounding a spot Bitcoin ETF could be out of place.

Also, they could indicate that the products may not be profitable for those enthusiastically rushing into them. Spot Bitcoin ETF is a form of crypto product that enables investors to speculate on the price of the global largest crypto token, Bitcoin, without actual ownership.

It offers a lower engaging price for investors and allows them to make profits. Many people in the industry believe that BTC ETF will accumulate up to $3 billion from investors in a few days once it starts trading. Following that, it could attract more billions of dollars as time flies.

Factors That Deter Some Firms From BTC ETFs

For the firms that have steered clear from Bitcoin ETFs, they put some factors as to why they could engage in the product.They think the field is already over-saturated, which could limit the growth of the product or cut down expected returns.

Additionally, they considered that the regulatory demands and marketing costs are outrageous. Also, they fear the field may lack strong demand to cushion the impact of costs.

The chief strategy officer at Roundhill Investments, Dave Mazza, has reacted to the company's skepticism of BTC ETF.

Mazza stated:

This could be the most successful ETF launch in history, but it's still going to be intensely competitive, requiring a lot of investment upfront. You have to weigh the odds that you'll end up as one of the winners or an also-ran.

Though Roundhill Investment has no interest in a spot Bitcoin ETF, it intends to launch a crypto ETF in the future. On his part, the CEO of ProShares, Michael Sapir, maintained his skepticism over the SEC's timely approval of ETF filings.

He stated that the company already has other crypto ETFs on futures products that offer options for its customers.

So, it doesn't need a spot ETF presently. Notably, ProShares runs Bitcoin futures known as ProShares Bitcoin Strategy ETF. Following its launch in 2021, the product emerged as one of the most massively-traded ETFs, raising over $1 billion within a few days.

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