At Consensus 2024, Bloomberg’s ETF Research Analyst James Seyffart engaged with experts and institutions to delve into the integration, challenges, and future prospects of digital asset ETFs.
Caroline Butler, Global Head of Digital Assets at BNY Mellon, highlighted the institution’s history of continuous innovation. “Despite being 240 years old, we’ve continuously innovated, and digital assets are just part of that journey,” Butler said, underscoring the importance of disciplined scalability in managing $47 trillion in assets.
Institutional adoption was a key theme of the discussion. Katherine Dowling, Executive Management at Bitwise Asset Management, stressed the significance of providing comprehensive research to advisors. “It’s about providing the necessary research for advisors to make informed decisions,” Dowling noted, emphasizing the ongoing due diligence process and the need to educate regulators on operational aspects.
The panel also addressed the rapid developments within the digital asset space. Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity Investments, commented on the dynamic nature of the industry. “Developments happen quickly, and we see interesting ways to deploy this technology,” she said. Joseph Chalom, Managing Director at BlackRock, discussed the success of Bitcoin ETFs, stating, “The success is a win for ETFs as a wrapper, offering superior convenience and safety.” He highlighted the growing client interest and the readiness of market infrastructure.
Lo Bessette added, “Success is reflected in trading efficiency and client engagement. Institutional and retail demand is strong.” She also remarked on the recent Ethereum ETF approvals, noting, “It was unexpected but welcome. The approval indicates a shift in how the SEC views these assets.”
Dowling suggested that the change might reflect political influence, saying, “The disapproval order I expected didn’t happen, indicating political influence.” The panelists agreed on the importance of collaboration and regulatory clarity. Butler reflected on the partnership with regulators, stating, “Collaboration has been crucial. We’ve teamed up to compete in the future.”
The discussion concluded with a consensus on the need for clear regulatory guidelines to support the continued growth and adoption of digital asset ETFs. “The success is a win for ETFs as a wrapper, offering superior convenience and safety,” reiterated Chalom, emphasizing the growing client interest and market readiness.
Overall, the panelists expressed optimism about the potential for other digital asset ETFs and the importance of a supportive regulatory landscape to drive the ecosystem forward.
