In a significant move that has sparked anticipation within the cryptocurrency industry, Google is poised to update its advertising policies on January 29, 2024. This update will permit certain cryptocurrency products to be advertised on its prominent search engine.
Specifically, Google’s revised policy will allow advertisements from “advertisers offering Cryptocurrency Coin Trust targeting the United States.” This development follows closely on the heels of the United States Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin Exchange-Traded Fund (ETF) applications on January 10, 2024.
Bitcoin ETFs meet Google’s criteria
Google’s updated advertising requirements will embrace “financial products that allow investors to trade shares in trusts holding large pools of digital currency.” Notably, this definition appears to align closely with Bitcoin ETFs, making them a likely candidate to benefit from Google’s revised ad policies.
Bitcoin ETFs allow investors to acquire a stake in the fund’s Bitcoin holdings by purchasing shares. This alignment between Google’s criteria and Bitcoin ETFs has generated optimism among cryptocurrency analysts, given Google’s immense reach and the ability to process a staggering 8.55 billion searches per day, as reported by DemandSage.
While Google’s policy revision signals a significant shift in its approach to cryptocurrency advertising, it is worth noting that the description of “cryptocurrency coin trusts” remains somewhat vague. This ambiguity leaves room for interpretation regarding which specific cryptocurrency products will ultimately be eligible for advertising on the platform.
One noteworthy development in the cryptocurrency landscape is the emergence of spot Bitcoin ETFs as a potentially safer option for advertisers. Notably, the Grayscale Bitcoin Trust (GBTC), one of the largest Bitcoin trusts, recently converted to a Bitcoin ETF as part of the batch of spot Bitcoin ETF applications approved earlier this month. This conversion has democratized access to Bitcoin investment, as GBTC shares on the primary market were previously available exclusively to accredited investors.
Accredited investors were required to have a net worth exceeding $1 million or an annual income of over $200,000 in the past two years. These stringent rules were established to protect less knowledgeable investors from high-risk investments.
In contrast, spot Bitcoin ETFs are available to the general public. They are subject to the SEC’s Securities Act of 1933, making them a potentially more secure option for advertisers on Google. This shift could expose a broader audience to cryptocurrency investment opportunities through the search engine giant’s advertising platform.
Potential impact on the crypto market
The decision by Google to allow certain cryptocurrency products to be advertised, including Bitcoin ETFs, could have a significant impact on the cryptocurrency market. With its extensive user base and reach, Google is a powerful platform for disseminating information and attracting potential investors.
The ability to advertise Bitcoin ETFs, which offer a regulated and accessible avenue for cryptocurrency investment, may further legitimize the cryptocurrency market and increase its adoption among a wider audience.
Well-known cryptocurrency trader Michael van de Poppe expressed optimism about the influence of Google ads on Bitcoin-related products in August 2021. At that time, the SEC was exploring Bitcoin Futures ETFs, which were approved in October 2021. Van de Poppe’s sentiment reflected the growing recognition of cryptocurrencies and their potential as a legitimate asset class.
