Resurrection 2024: Crypto awaits first spot ETF and more

economictimes.indiatimes.com:

Bitcoin (BTC), the flag bearer of the crypto market, is up 155% year-to-date. The number of institutions holding BTC in treasury is growing. A Bitcoin spot ETF is around the corner. And industries are leveraging crypto and the underlying blockchain technology to modernize their processes.

This resurgence shouldn’t be surprising. As with any market, crypto has its cyclicality. When interest rates went up and investors turned risk-averse, fewer capital flowed into crypto markets. The collapse of a popular stablecoin and an international exchange exacerbated the situation. And yet, the crypto ecosystem has continued to progress: Scaling up the blockchains and building more applications—in finance and beyond.

ETF and Institutional Adoption

Consider the much-anticipated spot exchange-traded funds for Bitcoin and Ethereum. The US Securities and Exchange Commission (SEC) is reviewing applications for nearly 18 Bitcoin and Ethereum ETF applications.

While the US already offers Bitcoin-futures ETFs, a spot Bitcoin ETF on NYSE or Nasdaq will open the way for a new wave of retail investors and large financial institutions to hold these assets in their portfolio. The crypto market has already begun pricing-in the ETF effect, with both Bitcoin and Ethereum on the rise.

A Better Solution

ETFs are only one part of the story. Blockchain is finding a greater role elsewhere as well. Franklin Templeton, an investment company with over $1.4 trillion in assets under management, has launched a money market fund on blockchain. Tokenization of the fund brings greater transparency to investors, and lowers the operational cost for the fund manager. This fund already has over $300 million in assets.

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