Analyst Claims 2019 Will Be The “Genesis” Year For Structured Crypto Investment Products

2018 was the year that the crypto bubble popped. 2019, however, could be the year that crypto investment products go mainstream. According to some analysts, some of the world’s largest financial institutions will launch structured crypto investment products before the end of the year.

That’s the chatter reported by Abacus Journal, formerly known as The ICO Journal, earlier today. Abacus Journal cites numerous sources with Fidelity, Goldman Sachs, and Blackrock. All of these sources describe a similar phenomenon: 2019 will be the “genesis” year for crypto structured products.

Here’s how the Abacus Journal describes how 2019 is shaping up:

“At some point, a Bitcoin ETF application is sure to be approved. But that isn’t the talk around water coolers (or via text and social media DM’s) at places like the CBOE, CME, NYSE, and global financial institutions. Each of those organizations is sure that an approval is coming and are preparing the infrastructure for the onboarding of any and all new crypto money.”

With that in mind, institutions are looking beyond bitcoin ETFs to other structured crypto investment products. If Abacus Journal’s sources are to be believed, then these companies are already operating with the assumption that bitcoin ETFs will be approved – and now they’re ready to take the next step.

In 2019, we could see the launch of more than just legal bitcoin ETFs; we could see investment products based around altcoins, for example. We could see other structured bitcoin products. By the end of the year, some of the world’s largest financial institutions may have launched their own crypto products.

Abacus Journal cites an unidentified source from Gemini who claims that the company has “got months worth of backlog that is waiting for the first approval” and that “some of the biggest institutions in the world have crypto products prepped and ready to hit the markets”. In other words, once a bitcoin ETF is approved, it could open the floodgates for other institutional crypto investment products.

Another source at CME, the futures trading market, echoed that sentiment, claiming that they too have crypto investment products waiting on the sidelines:

“Some of our clients are not only locked and loaded with ETF products, but there are a second set of firms that are set to service and market those products that will indirectly benefit from a succession of crypto-based approvals,” explains the CME source.

“This really is the push that seems to be moving the markets as it is on the tip of everybody’s tongues at the moment. That first approval will open the floodgates.”

One source interviewed by Abacus Journal also had an illuminating statement to make about a potential bitcoin ETF. That bitcoin ETF, if it gets approved, will quickly be outpaced by other crypto investment products entering the space:

“That first approval will open the floodgates. In six months, the first ‘Bitcoin ETF’ will look like a dinosaur to crypto investors. And the regulation that will be attached to any structured products like this will gather massive amounts of institutional assets.”

Meanwhile, a final Goldman Sachs source wrote to Abacus Journal confirmed the idea that 2018 was about regulatory action while 2019 will be about crypto investment products:

“2018 has been about building out the legal/regulatory and custody architecture that creates a level of comfort for clients. 2019 will address adoption and investment directly.”

If Abacus Journal and its sources are to be believed, then some of the world’s biggest financial institutions are preparing to launch crypto investment products as soon as the first bitcoin ETF is legalized.

Of course, Abacus Journal has a history of finding mysterious sources at suspiciously convenient times. The organization claims to have high-placed sources at some of the world’s biggest financial institutions and regulators. Many of the predictions from these so-called “sources” have been false over the last few months – including specific predictions about Bakkt and bitcoin ETF approval.

Nevertheless, it’s possible that major financial institutions have developed bitcoin investment products in anticipation of pending bitcoin ETF approval. Of course, it’s also possible that major financial institutions have shut down all crypto-related divisions over the ongoing bear market, and that major financial institutions are not going to touch crypto whatsoever in the coming months.

There’s also a possibility that a bitcoin ETF will never be approved, and that all of the points above become moot.

Stay tuned to see what happens next. Will bitcoin ETF approval open the floodgates to other bitcoin investment products? Or will bitcoin ETF denial sink the market into a tailspin?

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

190 +