Exchange-Traded Funds: Toward the Mainstreaming of Crypto-Assets

After years of regulatory roadblocks, crypto-asset index products have established themselves in the global financial market. They have offered investors simple, structured access to a market once reserved for insiders. Their rise has accelerated the mainstream acceptance of Bitcoin and attracted capital flows to the most established players, including Blackrock, which has become a key player with its IBIT ETF. This trend, however, reveals a high concentration of asset custody, primarily entrusted to Coinbase Custody, which fuels concerns about the risk of excessive dependence. 

Canada and Europe were pioneers in launching the first crypto-asset ETFs, well ahead of the United States. However, the EU remains constrained today by the UCITS Directive, which still prohibits the creation of spot ETFs.  This constraint diverts some capital to the United States, where structures are more flexible, less costly, and better designed to handle large volumes.