Coinbase nation head for Singapore Hassan Ahmed believes the approval of a spot Bitcoin exchange-traded funds (ETF) would be the catalyst for a “structural market change” for the flagship digital asset.
Ahmed made the assertion throughout an appearance on CNBC Worldwide on Jan. 2. He stated:
“[The ETFs] are as big a deal as people are making it out to be.”
Ahmed added that the ETF hype is greater than a mere development and can create a regulated path for trillions of {dollars} to return into the business that has to this point been “locked out of the asset class.”
SEC making method for ETF
Ahmed stated that the SEC is at the moment making method for the ETFs, which have been within the works for greater than a decade now. He stated it’s seemingly that the SEC will give the business an replace by the Jan. 10 deadline.
In keeping with the Coinbase exec, the SEC is unlikely to reject the spot ETFs as its “hand has been forced” by approving the futures Bitcoin ETF prior to now. For the reason that two are comparable structurally, the regulator doesn’t have motive to proceed rejecting them.
He added that the regulator’s latest actions level to a optimistic final result; nevertheless, nothing is a “done deal.”
Ahmed stated that when these ETFs are accepted, it is going to additional “destigmatize and legitimize” Bitcoin for institutional traders like wealth managers and asset managers within the U.S. who’ve been ready on the sidelines for years now.
The ETFs will virtually actually result in elevated demand for the flagship cryptocurrency.
Explosive development elements
Ahmed identified two key catalysts for Bitcoin in 2024: a rise in demand and a discount in provide as a result of upcoming halving event. He posited that these elements may result in explosive development for Bitcoin.
Ahmed added that the demand for Bitcoin block house is rising on the again of Ordinals and Inscriptions, which has led to BTC transaction charges hitting a “relative high since 2020.”
In keeping with the Coinbase government, this development will result in extra miner income and community safety in the long run.
The potential approval of this ETF is seen as a pivotal second within the cryptocurrency sector, indicating a rising acceptance and institutional curiosity in digital property. This growth, Ahmed suggests, may present a compliant and acquainted channel for asset managers and allocators to have interaction with the asset class.
