The United States Securities and Exchange Commission (SEC) has recently approved the country’s first spot Bitcoin exchange-traded funds (ETF), a decision that has sparked anticipation and curiosity in both traditional finance (TradFi) and decentralized finance (DeFi) spaces. This decision is expected to have significant effects on the markets and on Bitcoin itself.
Meanwhile, in Europe, the excitement over a Bitcoin ETF has already subsided, as the continent introduced its own Bitcoin ETF on Aug. 15, 2023. The first EU spot Bitcoin ETF, issued by the London-based Jacobi Asset Management as the Jacobi FT Wilshire Bitcoin ETF, hit the Euronext Amsterdam stock exchange over a year after its initial planned launch. This ETF was the first physical-backed Bitcoin fund, providing investors with a financial product backed by BTC. It was also classified as an Article 8 fund, promoting environmental and/or social characteristics.
Grzegorz Drozdz, the market analyst for the EU-based financial services platform Conotoxia, shared his insights on the implications of the U.S. spot Bitcoin ETF on the market, particularly from an EU perspective. He noted that the introduction of Bitcoin ETFs has significantly democratized access to the market, extending beyond traditional cryptocurrency exchanges and wallets. However, he also pointed out that the size of these ETFs is still small compared to the overall financial and crypto market.
According to Drozdz, the European Economic Area appears to be more open to institutional investment in crypto with the launch of its Bitcoin ETFs. However, these funds have not yet generated significant inflows from institutions. Market expectations are primarily focused on the approval of such instruments in the U.S., which could potentially influence the long-term development of the crypto world. Drozdz also highlighted the difficulty in accurately gauging the scale of capital ready to invest in this market with financial products that account for only 2.9% of capitalization.
Drozdz pointed to the rapid increase of the inflow of new funds that the Bitcoin ETF can bring from institutions and investors as something to be noted. He suggested that this could even indicate the start of a new bull market. This sentiment has been echoed by analysts and social media communities in the lead up to the SEC decision. Considering that bitcoin still accounts for as much as 53.7% of the market’s capitalization, the success of this cryptocurrency could have a significant impact on the rest of digital currencies.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Grzegorz Drozdz |
| Companies | Conotoxia, Jacobi Asset Management, Euronext Amsterdam stock exchange, Cointelegraph, United States Securities and Exchange Commission |
| Currencies | Bitcoin |
| Securities | None |
