Industry leaders discuss digital asset ETF evolution

James Seyffart, Bloomberg’s ETF Research Analyst, discussed the integration, challenges and future prospects of digital asset ETFs with experts and institutions at Consensus 2024.

“Even though we are 240 years old, we have continually innovated, and digital assets are just part of that journey,” said Caroline Butler, Head of Global Digital Assets at BNY Mellon, emphasizing the importance of disciplined scalability in managing $47 trillion in assets.

Institutional adoption also emerged as an important theme.

“This is about providing the necessary research so advisors can make informed decisions,” said Katherine Dowling, Senior Management at Bitwise Asset Management.

Dowling noted the ongoing due diligence process and the importance of educating regulators on operational issues.

The panel also touched upon rapid developments in the field of digital assets.

“Advances are happening quickly and we are seeing interesting ways to use this technology,” said Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity Investments.

Addressing the Bitcoin ETF craze, BlackRock Managing Director Joseph Chalom said, “Success is a win for ETFs that offer superior convenience and security.”

He talked about increasing customer interest and the readiness of the market infrastructure.

“Success is reflected in trading efficiency and customer engagement. Corporate and retail demand is strong,” Lo Bessette added.

Discussing the recent Ethereum ETF approvals, Lo Bessette said, “It was an unexpected but welcome development.” “The approval represents a shift in how the SEC views these assets.”

“The change may reflect a campaign issue,” Dowling echoed. “The disapproval I expected did not materialize, which indicates political influence.”

The regulatory environment and collaboration were key points of discussion.

“Collaboration was very important. We came together to compete in the future,” said Butler, evaluating the partnership with regulators to move the ecosystem forward.

Panelists expressed optimism about the potential of other digital asset ETFs. “

“This success is an asset to ETFs as a wrapper offering superior convenience and security,” said BlackRock Managing Director Joseph Chalom. He also added increased customer interest and market infrastructure readiness.

The discussion resulted in unanimous agreement on the need for clear regulatory guidelines to support the continued growth and adoption of digital asset ETFs.