Potential Approval of Bitcoin ETF Expected to Boost BTC and ETH
Date: 2023-12-13 Author: Dima Zakharov Categories: BLOCKCHAIN
Growing Interest in Digital Assets
A recent survey conducted by Institutional Investor and cryptocurrency exchange Coinbase has revealed a growing interest among institutions in digital assets. Compared to the previous year, respondents' sentiments towards the crypto industry have significantly improved.
Crypto Investors' Attitude Towards ETFs
The survey involved 250 cryptocurrency investors, with 65% of them believing that digital assets will become the most popular investment instrument for institutions within the next five years. The main driver for this growth is the anticipated launch of Bitcoin ETFs.
Clarity in Crypto Regulation
According to survey participants, the approval of this new instrument will not only increase interest in cryptocurrencies and make them more accessible but also bring clarity to the regulation of crypto investments. This perspective is shared by 64% of the respondents.
A Global Shift Towards Digital Assets
Brett Tejpaule, the Head of Institutional Sales at Coinbase, emphasized, "With over 5% of the global population, or approximately 425 million people, using cryptocurrencies, and 52 million Americans participating in them, the potential approval of cryptocurrency ETFs signals a turning point in the global transition to digital assets."
Positive Expectations and Investment Plans
Investors are also positive about the near-term prospects of cryptocurrencies, with 59% of respondents stating they expect to increase their investments in digital assets in the next three years. Remarkably, this number was only 32% in 2022.
Optimism Regarding Cryptocurrency Prices
Likewise, 57% of crypto investors believe that the prices of many tokens will rise over the next year. This represents a significant shift from the mere 8% who held this view previously.
Cryptocurrencies Among Attractive Assets
The study reveals that cryptocurrencies currently rank third among the 15 most attractive asset categories for participants, trailing only private investments and U.S. public stocks.
SEC's Decision Timeline
In early December, Bloomberg analyst James Seifert suggested that the next window for potential approval by the U.S. Securities and Exchange Commission (SEC) for the new instrument would open on January 5th. This prediction aligns with an earlier estimate by experts, who had targeted January 10, 2024.
SEC's Continued Dialogue
The SEC continues to engage with applicants, and discussions are ongoing. Representatives of the regulatory body have already met with asset managers from Grayscale to explore the possibility of converting GBTC into a spot Bitcoin ETF and discuss the finer details of the process.
