SEC approves Bitcoin ETFs: Experts respond

The U.S. Securities and Exchange Commission (SEC) has approved the long-awaited launch of spot Bitcoin ETFs; this is a major moment for the industry, and here, experts respond.

SEC Bitcoin ETF approval has global ramifications

This is a monumental moment for Bitcoin – byHector McNeil, HANetf

 
The Securities and Exchange Commission (SEC) has approved the listing of spot Bitcoin ETFs, allowing investors in the US to invest in the coin without having to buy it on a crypto exchange, such as Coinbase.

The long-awaited ruling has major ramifications, not just for the US crypto market, but for investors around the world. As US fund issuers race to dominate the spot Bitcoin field, the question remains – what does this mean for investors in Europe?

European investors have been able to get spot cryptocurrency exposure for a while, through ETCs physically backed by the underlying coins. But even for these investors, the news coming in from the US is significant.

Next Tuesday, we’ll be hosting a webinar featuring industry experts Hector McNeil, Co-Founder and Co-CEO of HANetf, and Bradley Duke, Chief Strategy Officer at ETC Group.

ETC Group are the leading European provider of cryptocurrency ETCs – their first product, ETC Group Physical Bitcoin (BTCE), was the most traded crypto ETP in Europe last year.

Join the webinar where we’ll analyse the profound impacts of SEC approval and what this means for Europe.

Eric Demuth, Co-founder and CEO Bitpanda:

 

“After a long struggle, the SEC has finally approved a Bitcoin Spot ETF. However, it is important to remember that today’s approval was not brought about by a rethink within the SEC, it was driven by external pressure. Courts have overturned SEC rulings, forcing them to make this decision.

What are the implications?
Whatever the cause, the approval of a Bitcoin Spot ETF is a huge milestone. From now on, long-term capital from institutional investors will flow into the crypto market. This decision will fundamentally change the industry. Until now, many institutional investors were unable to operate in the crypto sector within their regulatory framework, as they have to invest in traditional financial products. The ETFs that are now available will be a hugely important tool for institutions and major banks in the US.
 
I believe that the approval of a Bitcoin Spot ETF will further encourage the mass adoption of crypto-assets by institutional investors in the US. Institutional investors may be more willing to invest in Bitcoin if they have access to it through investment products such as ETFs. This is the next step into mainstream finance. Crypto is here to stay.

Bitcoin could hit the $100,000 mark this year
Although the approval is of course fundamentally very positive for the price of Bitcoin, much of the expectation that the ETF will be approved is already priced in, and it is likely that we will see a “sell the news” event after a brief upswing. In the long term, however, the higher liquidity and volume will lead to a higher Bitcoin price and could also help to reduce volatility.

The additional liquidity in the system from the US, together with other factors such as the upcoming Bitcoin halving in April or a possible drop in key interest rates, could lead to a Bitcoin price in the six-digit range in the long term. There is every possibility that we could see Bitcoin break the $100,000 mark as soon as this year. The Bitcoin ETF is another crucial step towards mass adoption of crypto assets. At Bitpanda, we are seeing a growing number of enquiries from established banks regarding our white label solution, custody solutions and other B2B products. The interest of established players to get involved in the crypto space and offer products to their customers is huge. We are ready to support them in this endeavour.
 

Yoni Assia, CEO and Co-founder of eToro

“The term ‘watershed moment’ can be a cliche, but in the case of today’s bitcoin ETF news, it could not be more justified. For 15 years, bitcoin has been growing in prominence as an asset class amongst retail investors, while in a reversal of traditional roles, institutional investors have remained largely on the sidelines waiting for traditional finance rails to be put in place.

“Today’s news provides an answer for institutional demand for bitcoin. It’s good news for crypto markets and supportive of our belief that bitcoin is an unstoppable technology. It is digital gold and taking a long term view, I believe that it represents the intersection of finance, economics and technology.

“For our users, retail investors, today’s news is positive as it will be supportive of the growth of bitcoin as an asset class, but I believe that the majority of ordinary investors will want to continue to buy and hold real BTC.”

Bradley Duke, Chief Strategy Officer at ETC Group, and Michael Silberberg, Head of Investor Relations at Alt Tab Capital

ETC Group launched BTCE back in June 2020, which is now Europe’s largest and most liquid physically-backed Bitcoin ETP. Last April, ETC Group launched the world’s first Crypto ETP to reference an MSCI index, DA20, which tracks an index of 20 cryptocurrencies.

Bradley Duke, Chief Strategy Officer at ETC Group commented, “The approval of the US spot Bitcoin ETFs by the SEC and also the Hong Kong Securities Commission announcement that it too will approve spot Bitcoin ETFs, goes far to legitimise Bitcoin as an investable global asset. Here in Europe, we have had secure and efficient spot Bitcoin ETPs for over 3.5 years and we are spoiled for choice with the range of physically-backed Crypto ETPs available including many different single-asset Crypto ETPs as well as broad market index products.”

Alt Tab Capital is a full service, crypto hedge fund, operated by crypto experts.

Michael Silberberg, Head of Investor Relations at Alt Tab Capital commented, “With Blackrock, Fidelity, Franklin, and Galaxy amongst the parties seeking BTC Spot ETF licenses, and further partnerships from JP Morgan and Goldman leaked recently, it is no surprise that the SEC has moved forward with what is industry consensus and granted these long-delayed licenses. In the short term, we expect continued frothy price accumulation on this news as capital flows into the market from a new class of institutional buyers to crypto looking to hedge with BTC, make these products part of their treasury management, and invest in the future of money itself. If we look for an analogy, Gold jumped approximately 250% four months after its first ETF approval and launched an 8-year bull run.

“Even as we welcome these vehicles to the market, it’s important to remind investors of all classes that these vehicles will come with restrictions such as cash-only creation/redemption and liquidity tied to market hours.”