Democratizing ETFs Beyond the Bitcoin ETFs Milestone
The Long Road to Bitcoin ETF Approval
Bitcoin ETFs have had a long and winding journey towards approval by the SEC. As early as 2013, investors Cameron and Tyler Winklevoss filed the first Bitcoin ETF proposal, kickstarting a years-long effort by financial institutions to launch regulated crypto investment vehicles. While Bitcoin ETF filings continued over the years, the SEC repeatedly denied proposals due to concerns over insufficient regulation and the potential for manipulative trading in the still-nascent crypto asset class.
A major shift came in 2021, when Bitcoin ETFs finally began receiving approvals. In October 2021, the ProShares Bitcoin Strategy ETF became the first Bitcoin futures ETF to launch, tracking CME bitcoin futures contracts instead of the spot price. This addressed some of the SEC’s concerns by trading regulated derivatives rather than direct bitcoin. Additional Bitcoin futures ETFs soon followed from Valkyrie, VanEck and others.
So, what exactly is a Bitcoin ETF? A Bitcoin Exchange-Traded Fund is a financial product that tracks the price of Bitcoin, enabling investors to gain exposure to the cryptocurrency without owning it directly. This structure allows traditional investors to participate in the crypto market through their existing brokerage accounts, fostering mainstream acceptance and accessibility.
Finally, on 10th January 2024, the SEC approved a number of ETFs proposed by the major tradFi asset managers. Trading under the ticker BTCW, this fund holds bitcoin directly rather than futures contracts, marking a significant milestone towards mainstream acceptance.
However, current ETF approval is limited to BTC spot ETFs, primarily targeting institutional players. This approval signals a monumental step in democratizing ETFs, but the broader accessibility for retail investors is yet to be realized.
DOMANI’s role in the narrative:
This is where Memento Blockchain’s Domani Protocol comes in. As an digital asset management protocol built on blockchain rails, Domani platform offers asset managers and investors a highly efficient, secure, and flexible solution for launching and administering digital funds.
Unlike traditional ETFs, digital ETFs on Domani Protocol can be easily created by users, providing a bridge between traditional finance and the rapidly evolving crypto world. Domani has already demonstrated its capabilities with a proven proof of concept alongside a reputable institution like Deutsche Bank, solidifying its commitment to revolutionizing the digital asset management space.
As both retail appetites and crypto opportunities grow, Domani’s infrastructure aims to satisfy demand for simplified Bitcoin and digital asset exposure.
https://x.com/DomaniProtocol/status/1745311056719687758?s=20
Hyperchain Roadmap: Building an Institutional-Grade Blockchain
Looking beyond the current landscape, Memento Blockchain is setting its sights on a hyperchain roadmap. This strategic initiative aims to build an institutional-grade blockchain that provides a secure environment for financial institutions to enter the digital asset management space.
In essence, we already have the Domani Protocol as a car in the digital asset management journey; Memento Blockchain now aspires to build the highway that paves the way for the broader adoption and acceptance of crypto funds.
As the Bitcoin ETF narrative continues to unfold, Memento Blockchain stands as a trailblazer in the digital asset management arena. Its commitment to innovation, underscored by its fully functional platform and hyperchain roadmap. Embracing the present and actively shaping the future, Memento Blockchain envisions a landscape where digital asset management is not only seamless and secure but also accessible to all.
