Historical moment for crypto industry as US approves spot ETF

K Raveendran

In a landmark judgement, the US SEC has approved 11 Bitcoin spot ETFs paving the way for mass adoption of digital assets. Sending you herewith, reactions from industry stalwarts on its impact and future outlook.

According to experts, it is expected that the US decision would prompt financial institutions in other regions to apply for similar businesses.

In view of this, other financial centres such as London, Hong Kong, Singapore, and Tokyo are also expected to introduce policies related to BTC spot ETFs.

This will ultimately lead to the widespread globalization and adoption of cryptocurrency. Additionally, the attributes of cryptocurrency are likely to expand beyond BTC to include ETH, stablecoins, and other tokens, allowing more people to understand the significance of cryptocurrency.

Analysts predict that Bitcoin prices may increase to around $48,000 to $50,000 after the approval of a spot ETF. The market conditions are expected to be influenced by the recognition and investment associated with such ETFs. Bitcoin ETF approval could unleash significant market demand, driving an upward trend in Bitcoin prices.

According to Gracy Chen, Managing Director at crypto exchange Bitget, the majority of Asian regions lean towards regulated financial vehicles and a regulated financial product around Bitcoin in Asia will add to the existing euphoria around digital assets in the region.

She cites a UN report to say that over 60% of the world’s youth live in Asia-Pacific, and the young population is naturally inclined towards innovative and new-age financial products. We anticipate rapid adoption of regulated Bitcoin ETFs across Asia especially after SEC’s Bitcoin ETF approval.

Dhruvil Shah, SVP, Technology at Liminal Custody Solutions, described the US decision as a watershed moment for the crypto industry as a regulated Bitcoin financial product in one of the largest economies of the world will create a huge influx of capital into the crypto market.

The approval of Bitcoin spot ETF will prove highly beneficial for the growth of sectors like Blockchain, Decentralised Finance, BTC ordinals, and digital asset custody, as the demand for such services will witness explosive growth, he added.

Also published on Medium.