- According to Rick Edelman, FTX’s “dark chapter” could soon be coming to an end.
- He also discussed important topics and speculation surrounding ETFs.
In an interview on the podcast ‘Unchained’, host Laura Shin discussed various topics surrounding Exchange-Traded Funds [ETFs] with Rick Edelman, founder of the Digital Assets Council of Financial Professionals.
Crypto Overshadows “Dark Chapter of FTX”
The recent one demise by Sam Bankman-Fried, former CEO of FTX [FTT]has had a lasting impact on the crypto industry, comparable to the Bernie Madoff scandal in the traditional financial world.
While some financial advisors still associate the collapse of the FTX with the face of crypto, the continued positive developments in the sector are gradually overshadowing this dark chapter.
Like Bitcoin [BTC] and ether [ETH] prices soared, ETFs performed well and major companies like Disney embraced NFTs, the story changed.
Bitcoin futures ETFs failed to impress financial advisors
Edelman emphasized that the Bitcoin Futures ETFs, which have been available for a few years, have failed to attract significant interest from financial advisors.
Despite the initial hype surrounding their launch, advisors found little excitement in these funds, mainly due to the complexity and costs associated with futures trading.
Regardless, the lackluster response to Bitcoin Futures ETFs has paved the way for the long-awaited launch of spot Bitcoin ETFs.
Edelman highlighted that there is widespread expectation in the financial industry that spotting Bitcoin ETFs will generate much greater interest compared to their futures counterparts.
The fundamental difference between spot and futures ETFs lies in their accessibility and simplicity, making spot ETFs more attractive to advisors.
Discover the launch of Bitcoin ETF: logistics
As the highly anticipated launch date for spot Bitcoin ETFs approaches, financial watchdogs are bracing for a potentially transformative moment in the cryptocurrency market.
January 10 has been identified as a pivotal day, with Bloomberg analysts predicting the launch of these groundbreaking investment vehicles.
Looking back at the historical context, the launch of Bitcoin Futures ETFs created excitement. However, the upcoming Bitcoin ETFs, with a dozen issuers in the mix, offer a unique landscape.
Edelman expected an initial increase as early adopters will seize the opportunity. Still, he emphasized that maintaining this rapid influx could be a challenge.
While the early adopters are ready to eagerly jump in, the subsequent journey is expected to unfold over months and years rather than just days. Edelman attributed this extended timeline to the complicated logistics processes inherent in integrating a new investment opportunity.
He also predicted that the winners of this race would be the investors. In particular, the founder drew parallels to the SEC’s approach to gold ETFs, emphasizing the need for multiple approvals at once to promote healthy competition in the market.
Ethereum ETFs are expected to launch shortly thereafter
The conversation then shifted to Ethereum ETFs, which were expected to launch shortly after Bitcoin. Edelman noted that while the crypto community was buzzing with excitement, mainstream attention remained limited.
However, he foresaw a future scenario where, after delving into Bitcoin, advisors would look for broader cryptocurrency exposure, with Ethereum emerging as a natural choice.
According to Edelman, advisors and clients would realize the limitations of a Bitcoin-only approach, leading to a broader exploration of the crypto landscape.
Ethereum, as the second largest digital asset, presented itself as an attractive choice, driven by its technological capabilities and potential for commercial applications.