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 mentioned:
“[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 pattern and can create a regulated path for trillions of {dollars} to return into the trade that has thus far been “locked out of the asset class.”
SEC making approach for ETF
Ahmed mentioned that the SEC is presently making approach for the ETFs, which have been within the works for greater than a decade now. He mentioned it is doubtless that the SEC will give the trade an replace by the Jan. 10 deadline.
Based on the Coinbase exec, the SEC is unlikely to reject the spot ETFs as its “hand has been forced” by approving the futures Bitcoin ETF up to now. Because the two are related structurally, the regulator does not have a very good motive to proceed rejecting them.
He added that the regulator’s latest actions level to a optimistic end result; nonetheless, nothing is a “done deal.”
Ahmed mentioned that when these ETFs are authorized, it should additional “destigmatize and legitimize” Bitcoin for institutional buyers like wealth managers and asset managers within the U.S. who’ve been ready on the sidelines for years now.
The ETFs will nearly definitely result in elevated demand for the flagship cryptocurrency.
Explosive progress elements
Ahmed identified two key catalysts for Bitcoin in 2024: a rise in demand and a discount in provide because of the upcoming halving occasion. He posited that these elements may result in explosive progress for Bitcoin.
Ahmed added that the demand for Bitcoin block area is rising on the again of Ordinals and Inscriptions, which has led to BTC transaction charges hitting a “relative high since 2020.”
Based on the Coinbase govt, this pattern will result in further 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 improvement, Ahmed suggests, may present a compliant and acquainted channel for asset managers and allocators to have interaction with the asset class.
