Bitcoin (BTC) Could See Significant Growth If Restrictions on Access to Bitcoin ETFs Are Lifted

Available data shows more than $31 trillion in managed assets remain restricted or prohibited from entering the Bitcoin ETF market.

According to recent reports, only five out of the top 25 investment platforms in the U.S. have full access to Bitcoin ETFs, while the remaining 80% are limited in exposure due to restricted funds or prohibitions.

The report, which is based on direct conversations with advisors at each firm, identifies structural constraints that are suppressing capital flows and concentrating them in specific areas.

Out of the top 25 U.S. wealth platforms, only five have full access to Bitcoin ETFs. These platforms are Fidelity, Planas, Charles Schwab, and Apex.

The report, which is attributed to Coinshares, notes that the lack of access to Bitcoin ETFs is surprising, given the growing interest in cryptocurrencies among institutional investors.

"It's striking that despite the U.S. Food and Drug Administration's approval of the first Bitcoin spot ETFs in October 2023, many U.S. wealth platforms still face restrictions or prohibitions on investing in these products," the report says.

According to Coinshares, the total capital under management by the 25 U.S. wealth platforms is more than $31 trillion. This includes both the assets that are directly managed by the platforms and the assets that are managed by the platforms' clients.

"If these platforms were able to invest in Bitcoin ETFs, it could have a significant impact on the price of Bitcoin," the report says. "However, we believe that the platforms are likely to begin investing in Bitcoin ETFs gradually, as they want to be sure that they are making sound investment decisions."

The report notes that the Trump administration's body language is likely to accelerate the adoption of Bitcoin and other cryptocurrencies among U.S. institutional investors.

"The Trump administration has been more open to cryptocurrencies than previous administrations," the report says. "This is evident in the administration's actions, such as the creation of the Presidential Task Force on Cryptocurrency and the administration's statements expressing support for the development of the digital asset industry."

According to Coinshares, the administration's body language is likely to encourage U.S. institutional investors to begin investing in cryptocurrencies more seriously.

"We expect to see more U.S. institutional investors allocating capital to cryptocurrencies in the coming year," the report concludes. "This could have a significant impact on the price of Bitcoin and other cryptocurrencies."

It is important to note that the information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind.