• The report stated that spot ETFs would have a greater impact on the crypto market’s price movement.
  • Canaccord reported that the institutional adoption of cryptocurrency is still increasing, with more than 50% of the largest hedge funds in the world trading or holding bitcoin ETFs.
  • Brokers said that Ether spot ETFs could help to broaden the institutional appetite for digital assets.

BTC Price Index and Live Chart – CoinDesk”>(BTC) and ether <a data-position="autolink" href="https://coindesk.com/price/ethereum/" title="Ethereum Price

Analysts led by Michael Graham expect spot ETFs to play a larger role in the price movement of crypto.

Canaccord reports that institutional adoption of bitcoin ETFs is still increasing, and “more than half of the largest hedge funds in the world are now trading/holding BTC spot ETFs. Major institutions have just begun to disclose their holdings and SEC could approve BTC options soon.”

The report stated that retail investors could also buy ETFs in order to gain exposure to crypto via individual retirement account (IRAs) or other tax-advantaged funds. The first Bitcoin spot ETFs to be approved for trading were in the U.S., in January this year.

After the SEC endorsed initial submissions from issuers in July, it is expected that ether spot ETFs will be launched later this summer. Before the new products are able to trade, the regulator must approve S-1 filings. Canaccord noted that despite macro uncertainties and future interest rate reductions, “favorable demand-supply dynamics following the halving of bitcoin’s price could increase the ETF tailwinds,”

The report said that once the ETFs start trading, they could have a positive effect on the crypto ecosystem. They “should help expand institutional appetite for alternative assets” and benefit the entire ecosystem.

Read more: Analyst: Ether will hit $6.5K this year, driven by inflows into Spot ETFs

Parikshit Miishra is the editor.