Are the new Bitcoin spot funds a game changer?
The Securities and Exchange Commission’s approval of 11 Bitcoin cryptocurrency ETFs this week could mark a turning point for investing in cryptocurrencies, in general, and its largest in price and market capitalization, Bitcoin, in particular.
Last week, Cathie Wood, CEO of Ark Invest and the company’s chief investment officer, which launched one of its new spot market ETFs, said: “We really believe this is an important moment for us to help democratize access to Bitcoin, allowing more… of people have access.”
The first batch of spot ETFs began trading on Thursday, amid significant interest from investors in cryptocurrencies. The period preceding the historic approvals for the launch of the funds witnessed a significant rise in the price of the most famous cryptocurrency, which at the beginning of trading on Friday had risen by more than 125% over the past 12 months.
Wood said that as financial companies begin to gain more exposure to the cryptocurrency market, through new funds, the impact on Bitcoin prices will be noticeable.
“If institutions managing trillions of dollars put in just 0.2% or 0.5%, that could make a real difference,” she added.
21.co is heavily involved in the cryptocurrency space. According to its website, the company is “bridging the gap between traditional finance and decentralized finance to make cryptocurrencies more accessible.”
“The new boxes will be an important part of a new wave of revolutionary technology,” said Ophelia Snyder, the company’s president and co-founder. Snyder emphasized that Bitcoin is more than just a new asset class.
“There’s still a long way to go in terms of how this will actually interact with the world as a whole, our kind of economic systems, and also, quite frankly, how it will end up interacting with investors’ portfolios,” she said.
Snyder also said the impact that large-scale access to Bitcoin could have on the market “cannot be underestimated.”
2024-01-13 22:52:05
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