Moneycontrol PRO
HomeNewsTechnologyBitcoin ETF may bring $5 billion in institutional investments over the next 45 days, say industry experts

Bitcoin ETF may bring $5 billion in institutional investments over the next 45 days, say industry experts

In a watershed moment for the world’s largest crypto token, Bitcoin, the US SEC has now approved exchange traded funds (ETFs) to track the token.

January 11, 2024 / 09:53 IST
Representative image

According to media reports, some products are expected to begin trading from Thursday onwards, creating a fierce competitive landscape.

-
Open Trading A/c
-
0 (0%)
Todays L/H
0
0

The US Securities and Exchange Commission's (SEC) approval of US-listed exchange-traded funds (ETFs) to track bitcoin could generate as much as $5 billion worth of institutional investments in the short-term along with a massive influx of new retail and institutional investors, industry insiders and experts predict.

SEC’s ruling has approved 11 applications including Black Rock, Vanguard, Bitwise, Greyscale, Franklin Templeton, Valkyre, ark Investment, Hashdex, Fidelity, CBOE and Invesco. According to media reports, some products are expected to begin trading from Thursday onwards, creating a fierce competitive landscape.

Sidharth Sogani, co-founder and CEO at crypto research firm CREBACO Global said, “Flood gates are now open. Institutional investments will now flow in. We anticipate about $5 billion coming in the next 45 days. ETFs will bring more stability to the price of Bitcoin since the liquidity risks will be reduced with time.”

“This is a big move for decentralisation going mainstream,” he added.

According to Ashish Singhal, Co-founder and Group CEO, of PeepalCo and CoinSwitch, the ETF news could bring some “short-term volatility in the market, the bigger picture is the long-term potential.”

“An ETF will be the simplest form of Bitcoin exposure for retail users. Investors can seamlessly benefit from Bitcoin price movements without the complexities of digital wallets or drastic investment strategy overhauls,” he said in a post on X, formerly Twitter.

Singhal added, “Imagine the impact if 401(k) retirement plans start investing in Bitcoin ETFs. These funds manage a staggering $6 trillion for about 60 million Americans. That influx of retail investors will familiarize crypto even further and help onboard millions of new users to crypto.”

Also read: Why a US bitcoin ETF is a game-changer for crypto

Rajagopal Menon, Vice President at the country’s largest crypto exchange WazirX said the impact of this development will continue for some time at least. The companies will be quick to get their marketing teams for Bitcoin on the ground while a lot of institutional money will pour into the space.

He added, “April is the month of halving and the supply shock plus the excessive money supply is the perfect storm for Bitcoin price. The excitement will then move to Ethereum as speculation will mount about an Ethereum ETF.”

When asked about the possible India impact, he told Moneycontrol that this will all ultimately depend upon regulations that come in place, as even for SEC the regulatory discussions in the US have been happening for the last few years.

“We are yet to have this type of discussion in India. Things will change because India has a signatory to the G20 Delhi declaration which outlines of regulatory roadmap till 2025,” he said.

Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day

Debangana Ghosh
Debangana Ghosh
first published: Jan 11, 2024 09:53 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advertisement

Crypto Basket
Powered By Mudrex

Bitcoin
Current Price ₹ 10,339,560.14 1D returns 0.51%
Buy Now
Ethereum
Current Price ₹ 383,886.46 1D returns 0.53%
Buy Now
Ripple
Current Price ₹ 263.51 1D returns 1.21%
Buy Now
BNB
Current Price ₹ 90,407.03 1D returns -2.81%
Buy Now
Solana
Current Price ₹ 19,893.40 1D returns -2.30%
Buy Now
USD Coin
Current Price ₹ 91.62 1D returns 1.31%
Buy Now
Crypto Blue Chip - 5
1W returns-4.42%
Invest Now
BTC 50 :: ETH 50
1W returns-5.06%
Invest Now
Web3 Tracker
1W returns-9.12%
Invest Now
AI Tracker
1W returns-11.43%
Invest Now
DeFi Tracker
1W returns-11.82%
Invest Now

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347