An epochal turning point in the world of cryptocurrencies, the Securities and Exchange Commission (SEC) has given the green light to spot ETFs on Bitcoin, effectively marking a significant step forward for the cryptocurrency in the field of traditional finance. This announcement, which comes ten years after the first request, represents in a certain sense a revolution in the global financial landscape.
SEC approves spot Bitcoin ETFs
The SEC, led by Gary Gensler, approved requests from major international asset managers, including industry giants such as BlackRock and Fidelity. This approval represents a clear turnaround compared to the more hostile positions adopted by Gensler’s predecessors who had never given the green light to the operation.
Now, however, the market has the possibility of investing in Bitcoin through a traditional financial vehicle, opening the doors to a wider audience of investors. There were doubts about the approval, especially due to the SEC profile X hack which had created embarrassment and inconvenience and could have led to a postponement of the decision.
Comments and perspectives, how the market reacts
Ferdinando Ametrano, CEO of CheckSig, commented on the event by calling it a “historic turning point” that marks the entry of Bitcoin into the world of traditional investments. Ametrano highlights how the cryptocurrency sector, once considered a “Wild West” populated by scammers, is now attracting attention thanks to the increasingly evident validity of Bitcoin as an asset. The approval of ETFs will lead to greater regulation and control, and this is certainly new in the cryptocurrency landscape.
According to Ametrano, ETFs will greatly simplify access to Bitcoin for investors who may struggle with direct holdings or identifying reliable intermediaries. The expected very high capital inflow into the market could lead to new price records in 2024, especially considering the relevance of the asset managers involved. Meanwhile, in the days leading up to the historic decision, Bitcoin surpassed the value of $47,000.
The forecasts are optimistic
Ametrano’s positive forecast is based on several factors, including the opening of the European market with regulations such as MiCA, tax clarifications in various countries, the upcoming Bitcoin halving (the reduction in the reward for miners that occurs every four years) , and the expectation of a decline in interest rates.
ETFs only offer financial exposure to Bitcoin without representing direct ownership, but that doesn’t make them any less important. As in the case of physical gold, Bitcoin ETFs only reproduce the financial performance of the cryptocurrency. Despite their advent, there is still a demand for direct ownership, especially among those who consider Bitcoin an easily transferable asset.
Now all that remains is to find out how the markets will react, even if experts predict exponential growth. Enthusiasts, for example, are wondering about meme coins and according to some, these could fly. The largest representative is certainly Shiba Inu, which could grow in value thanks to Bitcoin.
