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Crypto industry anticipates SEC nod for Bitcoin ETF

EditorHari Govind
Published 11/21/2023, 12:22 AM
© Reuters.

The crypto community is abuzz with the expectation of a Spot Bitcoin ETF potentially going live by January, a development that could unlock a market valued at approximately $100 billion, according to Bloomberg Intelligence. This optimism follows a surge in Bitcoin transaction fees to $18.67 last Friday, amid speculation around the ETF's approval.

Financial giants such as BlackRock (NYSE:BLK) and Fidelity are reportedly ready to enter the market once the U.S. Securities and Exchange Commission (SEC) gives the green light. Wealth advisors from Summit Wealth Partners, who manage assets exceeding $550 million, foresee strong institutional interest in the wake of the SEC's endorsement. The proposed ETFs are set to offer a more cost-effective direct investment method into Bitcoin compared to existing futures options.

Galaxy Digital, a prominent crypto bank, recently hosted a meeting with around 300 investment professionals to discuss expanding Bitcoin investments. While specific details from the meeting are not public, there's a reported increase in interest from various investor groups. Galaxy Digital projects that the addressable market for a new U.S.-based Bitcoin ETF could hit $14 trillion in its first year, with potential inflows of up to $39 billion by its third year.

However, analysts at Galaxy Digital caution that these projections could be affected by unpredictable market performance and other factors. BitGo CEO Mike Belshe highlighted that the SEC's reluctance to approve crypto-based investment products like Bitcoin ETFs is partly due to unresolved issues within the market structure. Despite these challenges, Bloomberg experts anticipate a high likelihood of batch approvals for all applications in January.

In related developments, Banco Santander (BME:SAN) has initiated Bitcoin and Ethereum trading services in Switzerland. Meanwhile, Bitcoin's price has seen an uptick to $37,168.96 alongside a significant increase in trading volume.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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