New Delhi, Jan 11 (SocialNews.XYZ) The approval of spot Bitcoin exchange-traded funds (ETFs) in the US not only symbolises a maturing market but also signifies support from regulatory authorities, industry experts said on Thursday.
The US Securities and Exchange Commission (SEC) has finally approved a number of spot Bitcoin ETFs and with the decision, the world's largest cryptocurrency has joined the global financial system.
“The readiness of the sector to list these ETFs and the commitment of the broader market to continue the growth momentum, highlight the industry's confidence in regulatory decisions,” said Rahul Pagidipati, CEO, ZebPay.
“We believe that the approval of Spot Bitcoin ETFs will not only enhance accessibility for investors but also contribute to the establishment of a more robust and regulated crypto market, aligning with our vision for a thriving web3 economy,” he added.
Gold ETFs transformed the gold market two decades ago, triggering a huge rally in gold's price. Over $100 billion is currently stashed in gold ETFs that trade in the US.
According to some experts, Bitcoin ETFs could do the same for the world of cryptocurrency. British multinational bank Standard Chartered forecasts that the US SEC’s approval of a spot Bitcoin ETF may allow Bitcoin to reach a high of almost $200,000 at the end of 2025.
“If ETF-related inflows materialise as we expect, we think an end-2025 level closer to USD 200,000 is possible,” wrote Geoff Kendrick, Standard Chartered’s Head of Digital Assets and precious metals analyst Suki Cooper in a new report.
The price of Bitcoin hovered around $47,000 apiece on Thursday after the US SEC decision.
Bitcoin soared 155 per cent in 2023.
“We expect Bitcoin to enjoy price gains of a similar magnitude as a result of US spot ETF approval, but we see these gains materialising over a shorter (one-to two-year) period, given our view that the BTC ETF market will develop more quickly,” the bank noted.
Spot Bitcoin ETFs have the potential to develop into a $100 billion product, according to some analysts, reports CoinDesk.
Currently, Bitcoin ETFs exist in Canada and Europe but have seen muted trading volume in Europe since launching in August.
The US decision will make around a dozen spot Bitcoin ETFs available to investors, such as those from Grayscale, Fidelity and BlackRock.
"While we approved the listing and trading of certain spot Bitcoin ETP shares, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto," SEC Chair Gary Gensler said in a statement.
Source: IANS
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