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.
First: How Much Impact Does a Bitcoin ETF Really Have?
It's the subject that's on everyone's mind: the never-ending, intensively offered, convertible spot Bitcoin ETF. For years, the Securities and Exchange Commission (SEC) has prohibited major financial institutions from creating such a product—which would allow traditional investors and entities to gain exposure to Bitcoin without holding any cryptocurrency themselves.
at once Blackrock Entering the Bitcoin ETF race, however, all bets are off. He is watching. It is likely to increase The behemoth of Wall Street will find its way and some analysts have predicted that the first place will be Bitcoin ETF Second week of January. In anticipation of that event, BTC has rallied more than 63% since October. Breaking $44,000 last week.
But somewhere Bitcoin ETF should wait, if accepted, swoop deus ex machine-style and flood crypto with unlimited buckets of Wall Street money? John Palmer, president of crypto clearing house BOTA, says it's not very fast Cboe Digital.
“I think it's great,” Palmer said Decrypt Spot Hope Bitcoin ETF. “But how many newcomers will there be?”
“Obviously, there will be more types of funds, annuities, pension funds, willing to access the product,” Palmer continued. “But I believe there are probably some that aren't, because it's still Bitcoin. So I don't think it will be a massacre.
Palmer says the biggest hope for the space is that the first year of the Bitcoin ETF market – if the product is approved in January – will be worth 10 billion to 15 billion dollars of investment. While significant, that figure pales in comparison to Bitcoin. 859 billion dollars Market capitalization.
Over time, Palmer believes, the integration of traditional finance with crypto markets will have a meaningful impact on crypto markets. But those waiting to step into a new reality in February should probably hold off on that Bugatti down payment.
“It won't be a light switch.
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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