In every way, cryptocurrency is at a crossroads. Across the markets, legal and regulatory environment, and Web3 startup ecosystem, there is little disagreement among industry leaders that 2024 could be one of the most important years for cryptocurrency. Whether these events will finally lift the industry out of winter and to new highs, or whether it will put it in jeopardy, remains another question.
But don’t panic, dear reader. Nothing can be certain about the future, especially when it comes to cryptocurrency.decryption We spoke with analysts in the finance, policy, and NFT fields to get a peek behind the scenes.
First: How much impact will spot Bitcoin ETFs really have?
The topic on everyone’s mind is the elusive, tantalizingly close, and potentially transformative spot Bitcoin ETF. For years, the Securities and Exchange Commission (SEC) has prohibited mainstream financial institutions from creating these products. This allows traditional investors and businesses to gain exposure to Bitcoin without holding any cryptocurrencies.
once black stone However, entering the Bitcoin ETF race, all bets are off. I’m looking for it It becomes more and more likely The Wall Street giant is poised to succeed, with some analysts predicting that Bitcoin ETFs will be first in line to gain approval this year. second week of january. In anticipation of that event, BTC has risen more than 63% since October. Exceeded $44,000 last week.
But should we expect spot Bitcoin ETFs to swoop in once approved? deus ex machina– Flood cryptocurrencies in style with unlimited buckets of Wall Street cash? Not so fast, says John Palmer, chairman of Spot Cryptocurrency Clearing. cboe digital.
“I think it’s fantastic,” Palmer said. decryption Outlook for spot Bitcoin ETFs. “But how many new participants will there be?”
“Obviously there will be additional types of funds, pensions and retirement funds that would be willing to access this product,” Palmer continued. “But I believe there will be some who don’t because it’s still Bitcoin. So I don’t think it’s going to be an avalanche of flows.”
Palmer said the high expectations for the first year of the spot Bitcoin ETF market would be $10 billion to $15 billion worth of investments if the product is approved in January. Although significant, the numbers pale in comparison to Bitcoin. $859 billion Market capitalization.
Over time, Palmer believes that integrating traditional finance into the cryptocurrency market could have a meaningful impact on it. But those expecting to enter the new reality in February should probably hold off on their Bugatti down payments.
“It won’t be a light switch,” he said.
Crypto Crystal Ball is a series examining the hottest topics in the industry in 2024. Stay tuned for additional perspectives to come.
Editor: Andrew Hayward
