The recent approval of 11 Bitcoin Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC) marks a new era of legitimacy and potential growth for the largest cryptocurency, analysts and experts said.
According to experts this move is expected to lower barriers to entry for investors, simplifying access to Bitcoin investments.
“Now that the SEC has approved Bitcoin ETFs, it is expected that financial institutions in other regions will apply for similar businesses in the United States. To prevent large and medium-sized financial institutions from transferring their funds out of the region, other financial centres such as London, Hong Kong, Singapore, and Tokyo are also expected to introduce policies related to BTC spot ETFs. This will ultimately lead to the widespread globalization and adoption of cryptocurrency. Additionally, the attributes of cryptocurrency are likely to expand beyond BTC to include ETH, stablecoins, and other tokens, allowing more people to understand the significance of cryptocurrency,” said Ryan Lee, chief analyst at Bitget Research
Lee predicts that Bitcoin may experience an increase in price to around $48,000 to $50,000 after the approval of a spot ETF. “The market conditions are expected to be influenced by the recognition and investment associated with such ETFs. Bitcoin ETF approval could unleash significant market demand, driving an upward trend in Bitcoin prices,” he added.
However, the future price movement will also be impacted by further capital inflows into Bitcoin ETFs. “The abundance or scarcity of funds will play a crucial role in market sentiment and price fluctuations, determining whether Bitcoin prices continue to rise or experience a decline. This event may trigger intense market volatility, and investors should closely monitor the market’s reaction post-ETF approval, as well as the flow of funds, to better formulate their investment strategies,” said Gracy Chen, Managing Director at Bitget.
The majority of Asian regions lean towards regulated financial vehicles. “A regulated financial product around Bitcoin in Asia will add to the existing euphoria around digital assets in the region,” Chen said. “As per a UN report, over 60% of the world’s youth live in Asia-Pacific, and the young population is naturally inclined towards innovative and new-age financial products. We anticipate rapid adoption of regulated Bitcoin ETFs across Asia especially after SEC’s Bitcoin ETF approval,” she added
“This is a watershed moment for the crypto industry as a regulated Bitcoin financial product in one of the largest economies of the world will create a huge influx of capital into the crypto market. The approval of Bitcoin spot ETF will prove highly beneficial for the growth of sectors like Blockchain, Decentralised Finance, BTC ordinals, and digital asset custody, as the demand for such services will witness explosive growth,” Dhruvil Shah, SVP- Technology at Liminal Custody Solutions, said.
“I strongly believe that the US SEC approval will serve as a template for regulatory clarity in other geographies and will create a growth-oriented environment to support the mass adoption of digital assets. At Liminal, we are thrilled to witness such a historic moment, and we believe that these are exciting times to be a part of the digital asset revolution,” Shah added.
The digital asset custody market is expected to touch $2 trillion by 2030 (Hackernoon report), and this seems like a realistic figure with the latest positive developments around the global digital asset industry, he said.