The approval of a spot Bitcoin exchange-traded fund (ETF) in the United States has caused a major shift in the cryptocurrency market, causing a significant surge in demand and fundamentally changing market dynamics.
In our latest video, Cointelegraph talks to experts about the profound implications of this landmark event and the prospects for more ETF approvals in the United States.
“It’s not really just about the U.S. market,” said Ophelia Snyder, co-founder of 21Shares. “If you remove the major risk of what U.S. regulators are going to do with bitcoin, it changes the risk-return profile of the asset,” she added.
Shortly after approval, the spot Bitcoin (BTC) product became one of the most successful ETF launches in history, attracting billions of dollars in capital inflows, demonstrating the huge demand for Bitcoin among institutional investors.
“We could see inflows of more than $15 billion by the end of the year,” predicted Eric Balchunas, Bloomberg’s chief ETF analyst.
A spot Ether (ETH) ETF is likely to start trading soon, but most analysts agree that it will not be as successful as previous ETFs. Still, such an investment product is likely to increase Ether’s popularity among institutional investors. “It’s an invitation to understand more about the Ethereum ecosystem,” said Michael Wursthorn, Galaxy’s head of communications.
To learn more about how ETFs are reshaping the crypto market, watch the full video on Cointelegraph’s YouTube channel and don’t forget to subscribe!