On January 29, Google will implement an update to its advertising policies, permitting certain cryptocurrency products to be promoted on its search engine. The revision hints at the inclusion of exchange-traded funds (ETFs) in the permissible category, triggering speculation within the cryptocurrency industry. In December 2023, it was reported that Google would modify its cryptocurrency-related advertising policies, allowing ads "targeting U.S. advertisers offering cryptocurrency Coin Trust." The update specifies that financial products enabling investors to trade shares of trusts holding substantial amounts of digital currency will be allowed.
With the U.S. Securities and Exchange Commission (SEC) greenlighting 11 spot Bitcoin ETFs on January 10, the criteria for Google's update seem to align with these developments. Spot Bitcoin ETFs allow investors purchasing shares to gain ownership of the Bitcoin held by the fund. Cryptocurrency analysts are optimistic about potential inflows into Bitcoin ETFs, leveraging Google's significant transaction processing power in search, with the platform handling 8.55 billion searches daily. However, Google's update vaguely references the permitted products as "cryptocurrency trusts."
One of the largest Bitcoin trusts, Grayscale Bitcoin Trust (GBTC), recently transitioned to a spot Bitcoin ETF following SEC approval on January 10. Previously restricted to accredited investors with specific net worth criteria, GBTC shares were available on the primary market with a six-month holding period. The shift to spot Bitcoin ETFs, which are open to the broader U.S. public and regulated under the Securities Act of 1933, suggests a potentially safer option for Google to include in its advertising policies.
The anticipated impact of Google Ads on Bitcoin-related products was noted by cryptocurrency trader Michael van de Poppe in August 2021. He emphasized the significance, especially as the SEC explored a Bitcoin futures ETF, which received approval in October 2021. The update in Google's advertising policies aligns with the evolving landscape of cryptocurrency investment products and regulatory approvals.
