On Monday, Jan 29, Google plans to revise its policies, permitting the advertisement of specific cryptocurrency products on major search engines. However, there is anticipation within the crypto industry that Bitcoin exchange-traded funds (ETFs) may qualify under the updated criteria.
In Dec 2023, Cointelegraph disclosed that Google intended to modify its crypto and related ads policy. It opened the door on Jan 29 for ads from advertisers providing “Cryptocurrency Coin Trust targeting the United States.”
Following the United States Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETFs on Jan 10, veterans who acquire shares in a spot Bitcoin ETF now gain ownership in the fund’s Bitcoin holdings. This development corresponds with Google’s revised criteria:
“Financial products enabling investors to trade shares in trusts holding substantial amounts of digital currency.”
However, Crypto analysts express optimism regarding the anticipated influx of funds into Bitcoin ETFs, attributing this outlook to Google’s substantial transaction processing capabilities in searches. Recent statistics from DemandSage indicate that Google handles a staggering 8.55 billion searches daily.
Nevertheless, Google provides a somewhat ambiguous description of permissible products, terming them “cryptocurrency coin trusts.”
Simultaneously, the Grayscale Bitcoin Trust (GBTC), among the most significant Bitcoin trusts, has transformed into a spot Bitcoin ETF. This change aligns with the SEC’s recent approval of several such ETFs on Jan 10.
Google’s Potential Move: Advertising Bitcoin Through Safer Regulatory Avenues
Previously, acquiring GBTC shares on the primary market was restricted to accredited investors and necessitated a six-month holding period.
Accredited investors must possess a net worth exceeding $1 million or an annual income surpassing $200,000 for the past two years. These criteria aim to safeguard individuals with limited financial knowledge from engaging in precarious investments that could lead to losing their funds.
Contrastingly, spot Bitcoin ETFs are open to the general public in the United States and regulated under the Securities Act of 1933. However, this regulatory framework positions them as a potentially safer avenue for Google to consider in its advertising efforts.
In Aug 2021, the well-known cryptocurrency trader Michael van de Poppe expressed optimism regarding the impact of Google ads on Bitcoin-related products. This sentiment was particularly relevant in the context of the SEC chair’s exploration of Bitcoin Futures ETFs, which eventually received approval in Oct 2021.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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