On January 10, the US Securities and Exchange Commission (SEC) approved 11 applications for Bitcoin ETFs from BlackRock, Fidelity, Invesco, VanEck, Ark Investments, 21Shares... These funds began trading on the morning of January 11, sparking a fierce battle for market share. LSEG data shows that Grayscale, BlackRock and Fidelity are dominating trading volume. Previously, the SEC rejected many applications for Bitcoin ETFs on the grounds that Bitcoin was fixed on unregulated exchanges, making it impossible for the agency to ensure investor safety.
Bitcoin ETF is considered a turning point for the cryptocurrency industry
Bitcoin has doubled in value in 2023, gradually recovering from a tumultuous 2022 for the cryptocurrency industry, when many large companies such as FTX collapsed, according to Reuters. Ether rose 5% to $2,653, its highest level since May 2022.
Geoff Kendrick, head of digital asset research at Standard Chartered Bank, said that once a Bitcoin ETF is approved, it is very likely that an Ether ETF will also be approved. Standard Chartered estimates that Bitcoin ETFs could attract $50-100 billion in 2024 alone.
Institutions and investors no longer have to rely on futures trading or self-custody to gain access to Bitcoin, said Nick Ruck, CEO of blockchain company ContentFi Labs.
In 2023, JPMorgan believes that Bitcoin ETFs in some other markets such as Canada and Europe do not attract significant interest from investors, so the launch of an ETF in the US will not be a game changer for the cryptocurrency sector.
Marion Laboure, a strategist at Deutsche Bank, said it will take time to see whether widespread adoption will have an impact on the cryptocurrency ecosystem and the financial system. The approval of an ETF opens a new chapter for Bitcoin prices, but volatile conditions are still possible.
The investment community has been wary of the risks of cryptocurrencies because of previous crashes in the sector. In December 2023, Kristalina Georgieva, head of the International Monetary Fund (IMF), said that widespread adoption of crypto assets could undermine macroeconomic financial stability.
Source link
Comment (0)