Cryptocurrency markets are still buzzing about the trading possibilities that could follow the approval of a Bitcoin exchange-traded fund (ETF). Experts believe a regulator thumbs-up for the proposed ETF would fling the doors of exchange floors wide open, realising institutional and retail virtual currency investments.
Fuelling this prevailing crest of excited anticipation, the probable involvement of reputable investment giants such as BlackRock, Fidelity, and Invesco stirred speculations that the spot-Bitcoin ETF will achieve a $100bn market value in due course. Reportedly, Galaxy Digital Holdings Ltd. (GLXY.TO) conferred with about 300 investment professionals about Bitcoin allocations as the ETF approval and launch approaches.
Those keeping a close eye on the matter believe the US Securities and Exchange Commission will give the stated ETF the go-ahead sometime in January after approximately 10 years of opposition. Wall Street thinks this is just the pick-me-up cryptocurrency trading need after the FTX fraud fiasco.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
However, as with everything, the flipside of this virtual coin is not so rosy. Despite significant interest, many investors are hesitant to put their money into crypto and cannot see past the FTX aftershocks. Plus, since its 2021 peak and regardless of its recent positive spikes, Bitcoin never did gain the momentum to reach and maintain those heights again.
After weighing the pros and cons, financial experts remain optimistic about the tax and cost benefits of an approved spot-Bitcoin ETF. According to Bloomberg, Coinbase, a leading crypto trading platform, feels that such a fund will create new lending and derivatives trades in the wake of regulated transparency and liquidity.