See: 'Bitcoin ETF boom won't mimic previous rallies led by retail investors' | The crypto mile
Bitcoin has rallied after the US Securities and Exchange Commission (SEC) approved multiple spot bitcoin exchange-traded funds (ETFs). However, a prominent venture capital founder has said that retail investor participation will be more controlled than in previous cycles, as oversight and regulatory compliance has increased.
Last Wednesday, the SEC approved ETF applications from some of the biggest names on Wall Street, from BlackRock (BLACK) to Franklin Templeton (ben). Investors hope that spot bitcoin ETFs will open the door for mainstream capital to flood the cryptocurrency market.
Retail participation will be different this cycle
According to Outlier Ventures founder Jamie Burke, today's bitcoin (BTC-USD) investment conditions are different compared to the 2021 bull market, in which an influx of retail investors drove the price of the digital asset to an all-time high of over $68,000.
Read more: Live Crypto Prices
After the SEC's approval of multiple ETFs, "retail investing will be different this time," Burke told Yahoo Finance. The crypto mile.
"While many retail investors will gain access to bitcoin through financial products like spot bitcoin ETFs and bring more capital into the market, it will come in in a different way," he added.
Burke said the surge in interest in bitcoin, sparked by the SEC's approval of multiple ETFs, will not resemble previous hype cycles that saw substantial retail participation. "I think that's almost done," Burke added.
"We are now seeing many enforcement actions by regulators tackling the sale of unregistered securities. Here in the UK, the Financial Conduct Authority (FCA) is putting various controls on how cryptocurrencies are promoted in retail .
Read more: Bitcoin Rally Fuels $50K Speculation Over Spot ETF Anticipation
"So retail is likely to come through more structured instruments now. Hopefully now it will be a little more consistent, steady and less volatile," Burke said.
A retail investor is an individual who buys and sells financial assets for his or her personal investment and not on behalf of an organization or institution. Basically, they are ordinary people who participate in the financial markets to increase their wealth.
Read more: US Crypto Crackdown Is 'An Opportunity for the UK'
Following last Wednesday's approval, investors in the US now have access to the ETFs, but they remain prohibited for those in the UK due to FCA rules.
In the UK, US ETFs are not available for sale because they do not issue key documents to investors. It means asset managers would need to launch funds specifically for the UK market.
Consequently, the main option for cryptocurrency enthusiasts in the UK is to acquire bitcoins through cryptocurrency trading platforms, such as Coinbase (CURRENCY) or Kraken.
AI-crypto projects in 2024
Burke also highlighted the continued development and activity in the field of artificial intelligence-related cryptocurrency projects as a growth area in 2023. He emphasized the continued exploration of topics related to AI and data ownership and also called for the increasing need for decentralized forms of AI and greater transparency in AI governance and decision-making.
Read more: Sovereign Agents: Your Own Personal AI Assistant? | The crypto mile
Burke emphasized the potential for AI agent systems to conduct economic activities on behalf of human users on blockchains and described the current need for AI systems that enhance user sovereignty, especially with the decreasing availability of open web data. .
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Burke suggested ways to encourage users to contribute data to train large language models in a controlled manner and with greater privacy. This could potentially allow them to earn passive income from your data stream.
Tokenization of real-world assets in 2024
Burke discussed the tokenization of real-world assets as another major development that could be an area of โโfocus in 2024. This process enables the representation of traditional assets such as real estate and bank-issued debt on blockchains, improving liquidity and efficiency.
Tokenization can also extend beyond traditional financial markets to encompass various sectors, including supply chains and scientific research and development. The process could allow for the decentralization of scientific research and the creation of autonomous credit markets.
See: Sovereign Agents: Your Own Personal AI Assistant? | The crypto mile
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