The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has revolutionized the cryptocurrency market, driving a substantial increase in demand and significantly shifting market dynamics.
In our latest video, Cointelegraph converses with experts about the profound impact of this milestone and the potential for additional ETFs to be approved in the United States.
“It’s not actually just about the U.S. market,” noted Ophelia Snyder, co-founder of 21Shares. “Once you eliminate the major risk associated with what the U.S. regulator will decide about Bitcoin, it changes the risk-return profile of the asset,” she added.
Following their approval, the spot Bitcoin (BTC) products quickly became some of the most successful ETF launches in history, drawing in billions of dollars in capital. This indicates a strong appetite for Bitcoin among institutional investors.
“We’re likely to see significantly more than $15 billion by the end of the year,” predicted Bloomberg senior ETF analyst Eric Balchunas.
While a spot Ether (ETH) ETF is expected to commence trading soon, most analysts believe it will not achieve the same level of success as its predecessor. Nonetheless, such an investment product would likely boost Ether’s popularity among institutional investors. “It’s an invitation to learn more about the Ethereum ecosystem,” argued Michael Wursthorn, head of communication at Galaxy.
To learn more about how ETFs are transforming the crypto markets, check out the full video on Cointelegraph’s YouTube channel, and don’t forget to subscribe!