After a dramatic few days in the cryptosphere, spot bitcoin ETFs have been approved for 11 firms. We’ve rounded up comment from business figures and industry insiders.
Nigel Green, CEO, deVere Group
“The approval of bitcoin ETFs is a watershed moment for bitcoin and the entire crypto market. Institutional investors have long been cautious about entering the crypto space due to concerns about regulatory uncertainties and market integrity.
“The introduction of SEC-regulated bitcoin ETFs addresses these concerns by providing a transparent and secure investment vehicle, paving the way for institutional capital to flow into the market.
“As traditional investors seek diversification and higher returns, bitcoin ETFs offer an attractive option, potentially unlocking billions of dollars in new investments. Bitcoin ETFs help democratize access to the cryptocurrency market, allowing a broader range of investors to participate.
“Regulatory clarity surrounding these investment vehicles provides a framework for market participants to operate within established rules, promoting a more secure and transparent environment. As regulatory uncertainties dissipate, more and more institutional and individual investors can confidently engage with the crypto market, further reinforcing the legitimacy of bitcoin.”
Andy Baehr, Indices Managing Director, CoinDesk
“A week after their 15th birthday, bitcoin ETFs are available for US investors from a wide range of blue-chip issuers. The years-long campaign to secure regulatory approval has ended in triumph. One small step – however reluctant – for Gary Gensler; one giant leap for crypto.
“Not only does ETF approval help usher in the “early mass adoption” phase of digital assets, it also closes the book on the last big crypto story of 2023, notably the FTX and Binance prosecutions.
“Macroeconomic conditions have also become more supportive of bitcoin’s price, with expectations for inflation and interest rates improving. The Crypto Winter is over.
“But there is a more important change ahead. Now that long-sought ETF access to bitcoin is a done deal, investors will want to know: What’s next after bitcoin? The digital asset class is born, and the market will look for new tools to use to understand and explore it. Watch this space!”
“Not only does ETF approval help usher in the ‘early mass adoption’ phase of digital assets, it also closes the book on the last big crypto story of 2023, notably the FTX and Binance prosecutions.”
Andy Baehr, Managing Director, CoinDesk Indices
Sheila Warren, CEO, Crypto Council for Innovation
Photo: Businesswire
“A spot bitcoin ETF isn’t just a financial instrument. It’s a significant and practical move towards integrating crypto into the mainstream. This move helps make this revolutionary technology more accessible to all.
- Regulatory evolution: The introduction of a spot Bitcoin ETF isn’t just about market dynamics, it’s a catalyst for regulatory evolution. It necessitates a framework that accommodates the unique nature of crypto, potentially leading to more appropriate and informed regulatory policies in the crypto space.
- Increased legitimacy: This milestone will shift public perception, painting bitcoin as a legitimate component of a diversified investment portfolio.
- Democratizing access: A spot bitcoin ETF is a bridge between traditional finance and the burgeoning world of crypto. Allowing investors to partake in the bitcoin journey without the technical hurdles of direct ownership is a significant step towards inclusivity.
- Innovative financial landscapes: A spot bitcoin ETF is a precursor to a plethora of innovative financial products and services that straddle the line between traditional finance and cryptocurrencies, expanding the horizon for what’s possible within the crypto ecosystem.
- Market dynamics: The ripple effects of a spot bitcoin ETF could lead to a recalibration of market dynamics, aligning them closer to traditional financial markets, yet retaining the distinct characteristics of the crypto world.”
“[The spot Bitcoin ETF is] a catalyst for regulatory evolution. It necessitates a framework that accommodates the unique nature of crypto, potentially leading to more appropriate and informed regulatory policies in the crypto space.”
Sheila Warren, CEO, Crypto Council for Innovation
Stefan Rust, CEO, Truflation
“The important question is: how will this impact bitcoin and other cryptocurrencies? Especially in terms of the core ethos around building and disrupting the legacy system.
“The arrival of the ETF puts a big question mark over the decentralization of bitcoin. And for those who want to invest in a decentralized financial future, the time has perhaps come to look elsewhere.
“Over the 15 years since the inception of bitcoin, the crypto ecosystem has evolved far beyond the world’s biggest cryptocurrency. Projects like Solana, Ethereum, Cosmos all offer access to new use cases and capabilities and are set to become major engines of growth, while new and exciting projects are being built as we speak.
“This growth will be centered around exciting new areas like real-world asset tokenization, layer-2s, and the building out of the DeFi ecosystem. This is where the future of crypto truly lies.”
Lucas Kiely, Chief Investment Officer, Yield App
“Now that the ETF has been approved, this will open the floodgates to both retail and institutional capital. The ETF allows the asset class to be embraced by the biggest names in asset management, adding more legitimacy to bitcoin’s already growing credentials. This will ensure that the only way is up for bitcoin and the rest of the cryptocurrency market in 2024. ”
Jeff Owens, Co-Founder, Haven1
“What will really drive the adoption of digital assets this year will be the tokenization of real-world assets (RWAs), from stocks and bonds to real estate and commodities. This could eventually bring trillions of dollars on-chain – after all, the stock market alone has a market cap of more than $100 trillion.
“Blockchain technology holds many advantages for real-world assets. It could facilitate broader access for those who have previously been excluded from investment markets, for example through fractional ownership of real estate.
Photo: LinkedIn
“With the current housing affordability crisis rampant across many developed economies, this could revolutionize property ownership.
“Blockchain can also help eliminate the often prohibitive fees of investing by removing intermediaries and facilitating faster settlement and access to global securities markets at any time throughout the day, rather than only during limited trading hours.
“In fact, RWA tokenization can carry the torch of bitcoin’s original intention – to provide an alternative to the traditional financial ecosystem. With the launch of the ETF, it’s fair to say that bitcoin itself has moved away from its original purpose as a decentralized p2p payments network.
“However, the promise of RWA tokenization takes this to a new level, offering a true alternative to traditional investment markets and opening up access to these vehicles for people across all corners of the globe.
“What will really drive the adoption of digital assets this year will be the tokenization of real-world assets (RWAs), from stocks and bonds to real estate and commodities. This could eventually bring trillions of dollars on-chain.”
Jeff Owens, Co-Founder, Haven1
“Once the hype around the bitcoin ETF has subsided, we believe the tokenization of RWAs will be the next big story of 2024. There are so many projects in the Web3 space currently working on creating the infrastructure to support these developments.
“The bitcoin ETF is just one investment vehicle. We think RWA tokenization will be much more than that. It will help create a truly global, borderless and decentralized investment ecosystem that will revolutionize the financial paradigm as we know it. Rather than bringing bitcoin to the traditional investment world, it will bring the entire traditional investment market on-chain.”
