Edul Patel, CEO and co-founder of Mudrex, says: "The SEC's approval of bitcoin Spot ETFs will attract institutional investors who were previously cautious due to regulatory concerns. โThere will be greater institutional interest which could lead to greater liquidity and more stability in the market, which can have a global impact, including in India.โ
Positive developments in the US crypto space often have a ripple effect on global market sentiment. Edul emphasizes that "Since the approval of the SEC is now seen as a vote of confidence in the legitimacy and maturity of the crypto market, this will increase confidence among investors around the world. Since regulatory bodies are also monitoring the trends "It is likely that Indian regulators could adjust policies or approach towards cryptocurrency-related financial products."
While the immediate effects might be evident in the Bitcoin market, legitimizing cryptocurrency investing through regulated spot ETFs has broader implications. Edul Patel notes that this could attract a diverse investor base, encouraging greater capital flows into various cryptocurrencies. Notably, major players like BlackRock have already applied for Ethereum spot ETFs, and the industry is eagerly awaiting potential approvals in this space.
Looking ahead, the confluence of ETF approvals, the upcoming halving, and regulatory clarity set the stage for a promising year for Bitcoin. Patel predicts: "The year 2024 is immensely promising for Bitcoin as the confluence of ETFs, halving and regulatory clarity will drive demand. BTC is expected to surpass its previous highs of 69k." The expectation is not just for short-term gains; Patel forecasts a substantial inflow of between $5 billion and $7 billion in the next three months, and institutions could allocate 1 to 3% of their capital into Bitcoin over the long term (2 to 5 years). On January 10, 2024, the US securities regulator approved the first US-listed exchange-traded funds to track bitcoin, in a milestone for the world's largest cryptocurrency and the crypto industry in general.
Spot Bitcoins that have received approval from the US financial regulator include Grayscale Bitcoin Trust and Bitwise. Bitcoin ETF, Hashdex Bitcoin ETF, iShares Bitcoin Trust and Valkyrie Bitcoin Fund. Similarly, ARK 21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Fund, Fidelity Wise Original Bitcoin Fund, and Franklin Bitcoin ETF.(You can now subscribe to our ETMarkets WhatsApp Channel)(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of Economic Times)
