“I think we will see more partnerships that will address this problem by providing crypto custody and storage solutions, which could take the form of partnerships between exchanges and SEC-related broker-dealers,” he said.
Specifically addressing the recent launch of Morgan Creek and Bitwise’s crypto index fund, Hirsch said “as the rate of adoption increases, I think we’ll see more crypto-institutional partnerships take the form of the Bitwise/Morgan Creek model, where investment management institutions partner with crypto index providers to supply a product.”
Finally, following the recent slate of Bitcoin ETF application rejections, Hirsch said the main issues “have been that proposals for Bitcoin ETF products haven’t demonstrated that they can prevent fraudulent and manipulative acts and practices.”
However, Hirsch does see a light at the end of the tunnel.
“If the SEC approves a Bitcoin ETF, the resulting uptick in the price of bitcoin (and other altcoins) could lead to a surge in institutional demand,” he said. “A favorable ruling on a Bitcoin ETF product could be exactly the validation that endowments, pension funds and family offices need to look toward crypto investments to diversify their portfolios.”
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