Coinbase exec claims spot Bitcoin ETF is not overhyped
Coinbase nation head for Singapore Hassan Ahmed believes the approval of a spot Bitcoin exchange-traded funds (ETF) would be the catalyst for a “structural market change” for the flagship digital asset.
Ahmed made the assertion throughout an appearance on CNBC Worldwide on Jan. 2. He stated:
“[The ETFs] are as huge a deal as persons are making it out to be.”
Ahmed added that the ETF hype is greater than a mere development and can create a regulated path for trillions of {dollars} to come back into the trade that has to this point been “locked out of the asset class.”
SEC making approach for ETF
Ahmed stated that the SEC is presently making approach for the ETFs, which have been within the works for greater than a decade now. He stated it’s doubtless that the SEC will give the trade an replace by the Jan. 10 deadline.
In response to the Coinbase exec, the SEC is unlikely to reject the spot ETFs as its “hand has been compelled” by approving the futures Bitcoin ETF prior to now. Because the two are comparable structurally, the regulator doesn’t have a very good purpose to proceed rejecting them.
He added that the regulator’s current actions level to a constructive end result; nonetheless, nothing is a “carried out deal.”
Ahmed stated that after these ETFs are authorised, it’ll additional “destigmatize and legitimize” Bitcoin for institutional traders like wealth managers and asset managers within the U.S. who’ve been ready on the sidelines for years now.
The ETFs will virtually actually result in elevated demand for the flagship cryptocurrency.
Explosive development components
Ahmed identified two key catalysts for Bitcoin in 2024: a rise in demand and a discount in provide as a result of upcoming halving occasion. He posited that these components may result in explosive development for Bitcoin.
Ahmed added that the demand for Bitcoin block area is rising on the again of Ordinals and Inscriptions, which has led to BTC transaction charges hitting a “relative excessive since 2020.”
In response to the Coinbase govt, this development will result in extra miner income and community safety in the long run.
The potential approval of this ETF is seen as a pivotal second within the cryptocurrency sector, indicating a rising acceptance and institutional curiosity in digital property. This growth, Ahmed suggests, may present a compliant and acquainted channel for asset managers and allocators to have interaction with the asset class.
