The U.S. Securities and Exchange Commission (SEC) has approved all 11 Bitcoin ETF applicants, marking a major milestone for the cryptocurrency industry. The landmark decision is expected to usher in a new era of capital inflows, institutional investment, and regulatory clarity, with the potential to reshape the entire cryptocurrency market landscape.
Bitcoin ETF, a key step in integrating into society?
Market analyst Michael Van de Poppe said the approval was historic because it came exactly 15 years after Hal Finney, one of Bitcoin’s early developers, tweeted the message, “Run Bitcoin.”
The analyst said that Bitcoin started out as a counter-voice during the 2008 financial crisis, and now has taken its place in mainstream finance as Wall Street institutions gain the ability to participate in digital assets.
While Bitcoin itself is decentralized and can operate independently of government regulation, Van de Poppe said approval of a Bitcoin ETF is critical to integrating the cryptocurrency into today’s society.
Van de Poppe further emphasized that an ETF is a regulated product that tracks the performance of an underlying asset (Bitcoin). It allows Bitcoin exposure to be traded on traditional exchanges such as Nasdaq or AEX, not just on cryptocurrency exchanges.
Due to their derivative nature, the pricing dynamics of Bitcoin ETFs differ significantly from the actual price of Bitcoin. ETFs function like funds, with a size that is predetermined and shares issued accordingly.
Cryptocurrency market expansion
Approval of these Bitcoin ETF applications opens the door to institutional investors, who have been held back by regulatory restrictions and the unregulated nature of Bitcoin itself.
It provides them with a regulated way to gain exposure to Bitcoin and participate in the growing cryptocurrency market. This move complies with anti-money laundering practices and regulatory frameworks, allowing institutional investors to confidently include Bitcoin in their portfolios.
As institutional investors enter the market through ETFs, the price of ETFs will be affected by market demand. Rising ETF prices indicate positive market sentiment and interest, which in turn leads to increased collateral demand.
ETF issuers must ensure that they hold enough Bitcoin as collateral, which further drives demand for cryptocurrencies. Van de Poppe predicts that institutional investors could bring in about $200 billion in investments, which could have a significant impact on Bitcoin's price.
The broader significance of the Bitcoin ETF approval lies in the maturity of Bitcoin as an asset class. Van de Poppe believes that with increasing attention from the education, regulatory, political and financial sectors, Bitcoin is expected to grow and be adopted further.
The analyst further claimed that the approval also sets the stage for the potential creation of an ETF of multiple cryptocurrencies (called “baskets”), and the possibility of Ethereum receiving similar ETF approval in the future.
This development is expected to have a positive impact on all stakeholders in the cryptocurrency market, including developers, miners, and investors.
Ultimately, Van de Poppe said this marks a major step toward mainstream acceptance and brings bitcoin closer to its status as “digital gold,” attracting more individuals and organizations seeking to include it in their portfolios. #华尔街 #现货比特币ETF
The daily chart shows BTC’s sideways price action over the past 24 hours despite the ETF approval.
