The approval of spot Bitcoin ETFs will lead to a massive expansion of the Bitcoin lending market. This is because both traditional financial and cryptocurrency market makers can arbitrage not only the spot BTC price, but also the price differences between various investment vehicles. Until recently, some of the larger TradFi market makers did not participate in cryptocurrencies or Bitcoin because arbitrage opportunities forced them to participate in unregulated venues.
With spot Bitcoin ETFs available from places like Nasdaq, Bitcoin derivatives on the Chicago Mercantile Exchange, and spot Bitcoin on regulated exchanges like Coinbase and Kraken, institutions now have all the tools they need to make the markets. I have it. One more thing is needed: physical Bitcoin inventory.