The cryptocurrency industry finds itself at an unparalleled crossroads, deemed a “generational investment opportunity” by recent research. Hashdex, a digital asset manager vying for approval of a spot Bitcoin ETF, anticipates a fleeting moment of opportunity due to an influx of institutions and exponential growth through network effects.
Hashdex Optimism on Spot Bitcoin ETF Approval
Hashdex’s report underscores the escalating prospects for spot Bitcoin ETFs in the United States. The asset manager notes an evolution in the narrative from an uncertainty of “if” to a definitive “when” in 2023.
Additionally, it forecasts US investors gaining access to a spot Bitcoin ETF by the second quarter of the upcoming year, with a spot ether ETF likely to follow suit.
Potential Impact on Market Distribution
The report emphasizes the significant market potential, estimating a $50 trillion AUM market, surpassing the combined figures of Europe, Canada, and Brazil. Notably, these regions already boast crypto ETPs. Hashdex anticipates scaled distribution, unlocking opportunities across various sectors like financial advisors, direct retail, and private banks.
Additionally, the report highlights the emergence of captive distribution. This would empower legacy asset managers, holding substantial AUM, to offer crypto products to their customers, potentially marking a significant shift towards mainstream adoption.
Entry of Major Asset Managers and SEC’s Shifting Stance
Noteworthy is the involvement of four major asset managers, collectively managing nearly $17 trillion in AUM, filing for spot Bitcoin ETFs. This influx of industry giants signals a shift in crypto acceptance within trusted financial channels and model portfolios.
While the SEC previously rejected spot Bitcoin ETF applications citing concerns about market manipulation, recent developments suggest a shift in stance. Furthermore, the regulatory body’s detailed and technical inquiries, typically made in later stages of ETF applications, indicate progress toward potential approval.
Recent reports reveal that discussions regarding spot Bitcoin ETFs in the US have advanced significantly, hinting at a potential green light for pending applications.
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