When can we expect Facebook and Instagram to follow in Google’s footsteps and greenlight cryptocurrency ads?
Patrick Coffee, a Wall Street Journal reporter, hints at the possibility of Facebook and Instagram allowing advertisements for spot Bitcoin ETFs. This speculation arises following Alphabet’s recent approval of ads for Bitcoin ETFs on platforms like Google Search and YouTube.
Google approval for crypto Ads
Google recently lifted its ban on certain cryptocurrency ads through an ad policy update, allowing the promotion of specific crypto-related products.
This policy change, which took effect in January 2024, permits the advertising of “advertisers offering Cryptocurrency Coin Trust targeting the United States” and is subject to compliance with local laws and regulations.
Advertisers must also be Google-certified and ensure that their products, landing pages, and ads meet all local legal requirements. The lifting of the ban is seen as a significant development, particularly in the context of approving spot Bitcoin exchange-traded funds (ETFs) in the United States, with companies like BlackRock and VanEck already initiating advertising campaigns for these products on Google.
Spot Bitcoin ETF approval
These are coming after the Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) from several issuers, including BlackRock, Grayscale, and others.
This approval allows these firms to offer spot Bitcoin ETFs, which are different from the existing futures-based Bitcoin ETFs.
BlackRock, the world’s largest asset manager, has been seeking approval from the SEC to offer options on its spot Bitcoin ETF, which currently holds a significant amount of bitcoins.
The approval of these spot Bitcoin ETFs is seen as a significant development in the traditional finance sector’s acceptance of cryptocurrencies.
This development is expected to provide U.S. investors with simpler ways of allocating funds towards digital assets. The approval of these ETFs follows a lengthy process that began in 2013, and it is considered a historic milestone in the integration of digital assets into traditional finance.
Initial ban of crypto Ads
However, it can be recalled that Facebook initially banned cryptocurrency ads in January 2018, citing concerns about misleading or deceptive promotional practices.
However, the company updated its policy in June 2018 to allow certain types of cryptocurrency ads from pre-approved advertisers.
Google also banned advertising related to cryptocurrency products in June 2018. However, Google updated its cryptocurrency advertising policy in January 2024, allowing certain types of cryptocurrency ads from pre-approved advertisers, including ads for US-based crypto trusts.
With the recent move made by Google, major social media platforms such as Facebook may be expanding their advertising scope to include cryptocurrency-related financial products.
If the social media giants proceed with this decision, it could open up new avenues for advertisers and investors alike to engage with spot Bitcoin ETFs on these popular platforms.
