Confidence remains high among many market watchers that a crypto ETF will get regulatory approval in the U.S. in either 2021 or 2022, bolstered by the successful launch in Canada of 3 crypto ETFs last February.
According to CoinDesk, more than 12 companies have applied for bitcoin ETFs. When the SEC will finally approve them, it will be a very bullish catalyst for bitcoin. Bitcoin ETFs will be a huge step forward for the industry. People will have an easy way to get exposure in their retirement accounts, and institutional adoption will accelerate. ETFs will also give hedge funds and other short-term traders an excellent trading vehicle. So it will be interesting to see if volatility increases once they are approved.
It will also have huge psychological implications. A SEC’s stamp of approval will mean a lot to institutional investors. Approval will make it a lot easier for traditional investment firms to make the case for crypto exposure internally.
Sven Franssen