Google to allow ads for Bitcoin investment trusts/ETFs

9 months ago 41

It is now possible to place advertisements for virtual currency trust products

On the 29th, US IT giant Google updated its rules for advertising regarding crypto assets (virtual currencies). Companies that provide virtual currency investment trust services in the United States can now advertise their products and services if they are approved by Google.

Google announced this update back in December of last year. It has been reported that the reason behind this is a trend surrounding Bitcoin (BTC) spot ETFs.

The U.S. Securities and Exchange Commission (SEC) approved the long-awaited Bitcoin spot ETF this month. Nine Bitcoin spot ETFs have started operating, of which BlackRock’s IBIT has assets under management (AUM) of approximately 2,960 yen ($2 billion) as of the 26th.

connection: BlackRock’s Bitcoin ETF “IBIT” reaches $2 billion in assets under management

What is Bitcoin ETF?

An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.

Virtual currency glossary

connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

Bitcoin ETF special feature

Will it lead to increased awareness of Bitcoin ETFs?

Google says that what is allowed are “cryptocurrency trust products,” including “financial products that allow investors to trade shares in trusts that hold large pools of cryptocurrencies.” I mentioned it.

The Bitcoin spot ETF that has already been launched in the US also falls under this definition.

It continued that all advertisers are required to comply with local laws in the regions where their ads are targeted. It also says the policy applies globally to all accounts promoting the product.

The cryptocurrency community is expressing hope that by appearing on Google’s search engine, the awareness of Bitcoin ETFs will increase among a new group of people other than investors.

The number of searches on Google is estimated to be 5.6 billion per day, and it has a great influence on Internet users.

Bitcoin spot ETF status

Among Bitcoin spot ETFs, GBTC, which has the highest fees, sold approximately 650 billion yen (approximately $4.4 billion) of Bitcoin in the first nine days due to outflows due to profit taking.

In response to this outflow, JP Morgan opined that “one can conclude that profit taking in GBTC is mostly over” and that “most of the downward pressure has passed.” JPMorgan estimated that about 193 billion yen (approximately $1.3 billion) of the funds outflowing from GBTC went to Bitcoin ETFs, which have lower fees.

connection: JP Morgan analysis Is Grayscale’s GBTC profit selling almost over?

Additionally, there is competition in fees among Bitcoin spot ETFs. Bitwise currently has the lowest fees at 0.24%, while Grayscale has the highest at 1.5%. Additionally, companies like BlackRock and Ark are lowering their initial fees.

connection: U.S. companies applying for Bitcoin spot ETFs face fee competition