Bloomberg Analyst: Bitcoin ETF Could Usher in Two “Major Catalysts” Before the End of the Year

ETFs could see two major catalysts before the end of the year as they become available to more investors on more platforms, according to Bloomberg senior ETF analyst Eric Balchunas. The first catalyst involves making them accessible to the asset management industry. Balchunas said that to his knowledge, they are not currently present on any significant offline platforms, which he noted manage approximately $7 trillion to $10 trillion in assets. Balchunas added that the ETF should be available on these platforms within the next few months. "It's like putting the product on the shelf at Whole Foods or a big box store. Just that exposure and availability helps," he said. Balchunas said that in addition to offline platforms, other large investment platforms like Raymond James and LPL can also help expand the reach of ETFs. He also noted that many smaller platforms are likely to follow suit. Balchunas said the second catalyst would be the launch of options trading on a Bitcoin ETF. He estimates that ETF-based options will be available in September. " "I think those two big catalysts are yet to come. Not to mention the halving event, which could cause prices to jump," he said. "Considering that they did so well without a push, without a big platform, without options, it's a small miracle." In addition to options, the analyst said banks are likely to develop structured products around ETFs, as they did with Ark Invest. Another vehicle would be the 2X Spot Bitcoin ETF, where the exchange is wrapped within the ETF, he added. One or two such leveraged ETFs are likely to gain a lot of traction, he said.