Whether they meet the demise of the Securities and Exchange Commission (SEC) or not, crypto-focused exchange traded products (ETPs) have been on the rise as of late, showing that funds are betting on the long-term prospects of bitcoin.
This comes despite the overall weakness in the crypto market in 2022, which has been showing correlation with both stocks and bonds amid inflation fears.
“A growing number of funds are betting on the long-term appeal of bitcoin and ether, a gritty gambit in the depths of a crypto winter,” a Reuters report said, noting that it hasn’t dampened the desire to put more crypto-focused products out into the market.
“Unfazed by a collapse in prices over the past 11 months, investment firms have unleashed a flurry of exchange-traded funds, anticipating that elite cryptocurrencies and their underlying technology will eventually prevail,” the report added.
It appears that funds are seeing the forest for the trees. Overall, the long-term potential of bitcoin and other cryptocurrencies could be too good to pass up even though the crypto market has been stuck in a slump for most of the year.
According to some market experts, this is all par for the course.
“Naturally when the market is slower, prices are lower, people have lost money, the intensity of the appetite does diminish,” said Chen Arad, co-founder of crypto risk monitoring firm Solidus Labs. “But it’s not the case in the long run. As a whole, I don’t think anyone is giving up.”
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For more news, information, and strategy, visit the Crypto Channel.