By all accounts, crypto is at a crossroads. Across markets, the legal and regulatory landscape, and the Web3 startup ecosystem, there is little disagreement among industry leaders that 2024 could be one of crypto's most successful years. Whether those events will ultimately lift the industry from the brink to new heights or tear it down remains another question.
But don't panic, dear reader. While nothing is certain about the future—least of all about crypto—Decrypt He spoke to analysts in the finance, policy and NFT space to get a behind-the-scenes look.
After looking at the impact of the spot Bitcoin ETF, here's how crypto and traditional finance may merge in 2024 and beyond.
As we head into the new year, all eyes in crypto are undoubtedly on A's promise. Place Bitcoin ETF. The hype surrounding the financial product—which allows traditional investors and entities to gain exposure to Bitcoin without any privacy—BTC explodes. 20-month maximum This month, and it has fueled industry-wide hopes that the never-ending crypto winter may finally be overcome by the flow of traditional capital.
Other analysts, however, have taken a more sanguine view of the potential impact of the Bitcoin ETF — and are more muted in predicting its impact on crypto markets.
So, how long will it be before crypto and traditional finance finally intertwine in a meaningful way?
Make no mistake: Although space does not belong to a Bitcoin ETF. One trillion dollars Overnight, its creation – perhaps, in 2024 – will nevertheless mark a major and lasting change in crypto history.
Eric Risley of digital assets consulting firm Architect Partners Management turns this from speculation into investment. In short, Risley believes crypto is going to grow.
“Part of the wealth is legalization,” Risley said. Decrypt. “When you offer companies like BlackRock and Fidelity as a mutual investment option, they change the game.”
While Risley agrees that crypto's first institutional offerings won't transform the industry overnight if they arrive in 2024, he thinks they will redefine crypto as an asset class in the eyes of a once skeptical world.
“You've moved it from a ‘new cheap thing' to something that anyone can get through traditional channels,” he said. “This is a big deal.”
Crypto's transition to adulthood won't be complete until late 2024, Risley believes. The process is estimated to take between five and 10 years worldwide.
But much is already in motion. Risley to October announcement That Depository Trust & Clearing Corp. ( DTCC )—a key tool of Wall Street's infrastructure that processes 2.3 quadrillion ($2.3 million) shares annually—has acquired digital asset infrastructure firm Securion, signaling the clearinghouse's commitment to advancing blockchain technology.
“They're as established as they come, and they're being supported,” Risley said. “You know what's coming.”
The Crypto Crystal Ball is a series that examines the hottest industry topics in the future in 2024. Stay tuned for more views in the coming days.
Edited by Andrew Hayward.
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