Approval of First Bitcoin ETF Nears, Major Change Observed in India
The US Securities and Exchange Commission (SEC) is on the verge of approving the first Bitcoin Exchange Traded Fund (ETF). Bloomberg senior analyst Eric Balchunas confirmed that trading in spot ETFs will likely begin on Thursday after last trading today.
CoinGape spoke with Rajagopal Menon, Vice President of Indian crypto exchange wazirx, about the potential launch.
“The ETF application approval granted by the SEC will be the first regulatory-backed crypto offering of its kind and will facilitate the steady flow of institutional funds in the crypto industry,” Menon said.
The market is in a good mood
The approvals will mark a monumental shift in the global financial ecosystem after a decade of waiting. And so, the market remains in good spirits despite minor losses following the debunking of fake Bitcoin ETF approval news.
Menon added: “This has certainly boosted the morale of the market, investors and analysts who are predicting an overall optimistic outlook for Bitcoin and the industry.”
This regulatory approval is expected to open the door to more institutional funds into the crypto market. “[ETF approval] “It is touted as one of the most important developments of 2024, alongside the Bitcoin halving, as it will increase market liquidity by large margins,” the Vice President said.
What will change for crypto?
2024 will be a pivotal year for the crypto world, with the Bitcoin halving event on the horizon in April. Menon explained that the approval comes at a time when the market has been struggling with liquidity challenges and trading activity has stagnated over the past year.
“We have seen some long position selling in the last few weeks due to the increase in prices of major tokens. While this put pressure on the market, it was the normal corrective behavior of a maturing ecosystem,” Menon said.
Market reactions and predictions
The Vice President of the Stock Exchange announced that the market’s initial reactions to the ETF news were bullish and an increase in Bitcoin prices was predicted. However, some analysts are now predicting a potential decline in prices and attribute this to slow initial demand for ETFs.
“Even if this is the case, this is still an optimistic move for the market given the high exposure of traditional funds to Bitcoin,” Menon said. said.
India in focus after Bitcoin ETF launch
U.S. markets remained the epicenter of emerging technology before Asia took over. With crypto launches, all eyes will be on how Asian markets like India will increase the demand for these ETPs.
“This move will be a golden opportunity to build wealth and diversify portfolio, especially in countries like India where the appetite for crypto investment is high,” Menon said. said.
We are preparing for the SEC decision
While all eyes are on the 11 ETF launches on Thursday, what if the decision doesn’t favor all applicants?
Menon explained: “And just in case the decision is not in favor of Exchange Traded Funds for Bitcoin, the market still has to wait for the Bitcoin halving and reapply for another round of ETF approvals, perhaps with less promotion. potential impact.
Meanwhile, today’s decision by the SEC regarding the Bitcoin ETF is a turning point for the industry.
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Shraddha’s professional journey spans more than five years; During this time, he worked as a financial journalist, providing information about the business world, markets and cryptocurrencies. As a reporter, he placed particular emphasis on learning about market interaction with emerging technologies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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