Bitcoin ETF Approved: What Industry Professionals Think

Author: Daniel Kuhn, Ben Schiller, Elizabeth Napolitano, CoinDesk; Compiled by Songxue, Golden Finance

The U.S. Securities and Exchange Commission (SEC) made a comprehensive decision today to approve a series of spot Bitcoin ETF applications .

More than a decade after first filing for a cryptocurrency-based exchange-traded fund, a financial product designed to track commodities and other assets like stocks, the U.S. Securities and Exchange Commission has decided to approve the first Bitcoin-based ETF based on currency spot market prices.

Many analysts believe these products, brought to the market by a host of Wall Street heavyweights including BlackRock, Fidelity and VanEck, as well as some crypto-native companies, could drive significant inflows into Bitcoin (BTC) ).

Larry Fink, CEO of BlackRock, the world’s largest asset management company said that the company applied to list a Bitcoin ETF last year because Customers have clear demand for such products. This decision opened the floodgates, and many competing applications soon emerged.

Since that moment, Bitcoin has risen more than 160%, based on the idea that if the SEC approved a Bitcoin ETF, any number of retail investors and companies would choose to invest in Bitcoin. Standard Chartered predicts more than $100 billion will flow into U.S. Bitcoin ETFs this year.

All of this remains to be seen, but now, with the SEC deciding to approve 11 of 13 Bitcoin ETF applications, the world will be watching. This article compiles the views of many experts – traders, executives, and analysts – to get their take on what this moment means for the future of the entire crypto industry.

Chainlink co-founder Sergey Nazarov: “The approval of the Bitcoin ETF clearly shows that traditional financial institutions are deciding how the cryptocurrency market The development side has an important role to play. This was evident when PayPal launched the ability to purchase certain cryptocurrencies. Banks began to offer crypto custody services. The approval of a spot Bitcoin ETF will lead to traditional large-caps such as BlackRock and Fidelity There is an influx of top financial companies that may actively participate in the cryptocurrency market.

Bakkt CEO Gavin Michael: “Today’s SEC approval of a spot Bitcoin ETF represents an important step forward for the industry. An important milestone that I hope marks a new era of reputable, trustworthy crypto companies offering regulated crypto products. The ETF’s approval has the potential to not only accelerate market adoption but also foster lasting momentum within the industry. As we move forward with more ETF applications, it is important that ETF providers work with qualified custodians with a proven track record of protecting digital assets. This collaborative approach is critical to reducing risk and creating a safe environment for investors. ”

Blockchain Association CEO Kristin Smith said: “The approval of the Bitcoin ETF puts greater pressure on Congress to pass regulations targeting the digital asset ecosystem. appropriate legislation. Consumer demand is expected to grow exponentially, and those consumers, investors, and entrepreneurs alike deserve regulatory clarity that addresses the many unanswered questions the industry has been urging our elected officials and regulators to answer. ”

James Angel, associate professor at Georgetown University: “If the SEC is anti-cryptocurrency, they are hitting themselves in the head. If they had quietly approved the Grayscale ETF application many years ago, there would be some crypto ETFs out there now without much fanfare. By stalling for time, they are creating more free publicity for the cryptocurrency. Additionally, they appear to be interested in having multiple ETFs begin trading at the same time. Whatever the reason, they are using the marketing muscle of Wall Street's biggest behemoths to start peddling these ETFs. Expect to see a lot of ads promoting various crypto products. If the SEC doesn’t want Mr. and Mrs. Main St. to invest their IRAs in cryptocurrencies, then the SEC has chosen exactly the wrong approach. ”

The Defiant founder Cami Russo said: “ETFs make it easier for institutions to hold Bitcoin, which is great, but ultimately we wrap Bitcoin in funds so that Intermediaries can sell them to investors, and cryptocurrencies are supposed to drive investor participation in the market. Instead, adapt them to unmanaged and permissionless solutions. ”

Delphi Digital CEO Anil Lulla: “Now the process of buying Bitcoin for retirement accounts will be simple and low-cost Much more. Today is the last day the community has the only incentive to promote Bitcoin and cryptocurrencies. Competition will be fierce. Especially in the first year, once the front-runner becomes apparent, it will continue to receive inflows into these ETFs. Because of this, the fees will be close to zero. You've seen this start to happen. ”

Molly White author of the Citation Needed newsletter said: “Even if a Bitcoin ETF is approved and doesn’t have a significant impact on price, I think we can still celebrate Bitcoin’s success in A major milestone was achieved in achieving its original goals. Finally, people will be able to turn their money into anonymous peer-to-peer assets that are not controlled by governments, to which they have their own keys, giving them full control without having to involve powerful financial institutions like BlackRock. ”

Swan Bitcoin CEO Cory Klippsten said: “Bitcoin sales channels are now represented by the most mature and trusted Wall Street institutions, and they will continue to spend hundreds of millions of dollars to Touting Bitcoin and its virtues. Now that Bitcoin’s primary avenues of exposure no longer include inducements to gamble on hundreds of dubious crypto tokens, we can hopefully see an end to the massive cryptocurrency hype-and-dump cycle. ”

Lex Sokolin, Managing Partner, Generative Ventures: “I’m excited to see capital as more programmability and functionality become available Flow into the Bitcoin ecosystem. From payments companies built on top of the Lightning Network to inscriptions that allow text and images to be tokenized, it’s exciting to see Bitcoin reflect the broader potential pioneered by Web3. I hope the story continues from store of value to global financial infrastructure. ”

Preston Byrne, partner at Brown Rudnick: “The approval of spot ETFs will have as significant an impact on the crypto market as the securitization progress of the 1980s on credit markets. For the first time, a bridge has been created between traditional finance (TradFi) and crypto other than through ACH. This field will quickly become even larger. ”

Yiannis Giokas, Senior Director, Moody’s Analytics (Risk and Analytics Division): “SEC’s approval of a Bitcoin spot ETF marks an important step in the institutionalization of cryptocurrencies to be more regulated and streamlined ways to expand Bitcoin’s accessibility to a wider audience. Such an ETF could lead to increased demand for Bitcoin and improve price discovery and market liquidity. However, this development also brings certain risks. Bitcoin’s notorious price volatility, as well as its fluctuating value relative to stablecoins and other cryptocurrencies, may expose mainstream investors to a more unfamiliar spectrum of investment risks. ”

Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity: “We have long believed that spot price-based trading products would be an effective way for investors to gain exposure to Bitcoin. . Fidelity has had years of constructive dialogue with the SEC, and this affirmation of approval demonstrates the positive momentum in the industry and provides additional options for investors looking to participate in digital assets. As a company, we are committed to meeting the growing needs of investors, providing them with the tools to support their choices and facilitate secure access to the market. ”

Attorney and AR Media CEO Andrew Rossow: “This level of confidence in a Bitcoin ETF being approved cannot be ignored as the market has been clamoring to establish a clear understanding of the digital asset. and a preliminary regulatory framework for modern securities law. Dissatisfaction with the SEC’s internal infrastructure and understanding of this emerging digital finance space simply represents short-sightedness that not only puts the SEC on autopilot, but leaves consumers, financial institutions, retail investors, and now regulators vulnerable to those who simply Utilization that hinders market growth and limits the rate at which these emerging markets and technologies can expand in the digital era. ”

“Whether SEC Chairman Gary Gensler likes it or not, the system must change when it comes to securities laws because domestic and international markets have changed (and are actively adapting). The SEC can no longer hide behind fears of market manipulation, which is a travesty since the SEC actually manipulates the market by resisting natural progression. As we are seeing today, this market will always try to correct itself, even in the form of boring black hat cyberattacks. ”

Samuel Armes, founder of Florida Blockchain Association: “I think ultimately, these ETFs will bring a lot of money into this field. This will drive prices up and get more people involved. But I also think this is going to start to create a divide between being able to hold your private keys versus having synthetic Bitcoin. Therefore, I think most people will choose to just buy and hold ETFs. I think a lot of people from the older generation will never keep their Bitcoins themselves, which obviously goes against the mission of the coin, but they just want to be part of it when it comes back. Therefore, Bitcoin's base layer mission, namely sovereign independence and free currency, will be hit. But price will continue to play a role and adoption will rise, whatever that means. ”

Anchorage Digital CEO and Co-Founder Nathan McCauley: “Spot Bitcoin ETFs mark the end of crypto as a ‘novel’ asset class and its emergence as a The beginning of a portion of a portfolio. The SEC’s approval opens the door for trillions of dollars to flow safely into the digital asset ecosystem through a regulated envelope that works for consumers and institutions of all types. ”

Sheila Warren, CEO of Crypto Council for Innovation: “A spot Bitcoin ETF is more than just a financial instrument, it is an important and practical way to bring crypto into the mainstream.” measures. This move helps make this revolutionary technology more accessible to everyone.

Regulatory evolution:The introduction of spot Bitcoin ETF is not only related to market dynamics, it is a catalyst for regulatory evolution. It requires a framework that can accommodate the unique nature of crypto, potentially leading to more appropriate and informed regulatory policies in the crypto space.

Increased legitimacy: This milestone will change the public’s perception of Bitcoin as a legitimate component of a diversified investment portfolio.

Democratizing Access: The Spot Bitcoin ETF is a bridge between traditional finance and the emerging crypto world. Allowing investors to participate in the Bitcoin journey without facing the technical barriers of direct ownership is an important step towards inclusivity.

Innovative Financial Landscape: Spot Bitcoin ETFs are the forerunner of many innovative financial products and services that span the gap between traditional finance and cryptocurrencies, expanding the scope within the crypto ecosystem. The horizon of possibility.

Market Dynamics: The ripple effect of a spot Bitcoin ETF could lead to a recalibration of market dynamics, bringing it closer to traditional financial markets while retaining the unique characteristics of the crypto world. ”

eToro CEO and Co-Founder Yoni Assia: “The term ‘watershed moment’ may be a bit cliche, but it couldn’t be more true in today’s Bitcoin ETF news. Couldn't be more appropriate. Over the past 15 years, Bitcoin has continued to gain prominence among retail investors, while in a reversal of traditional roles, institutional investors have largely stayed on the sidelines while waiting for traditional financial infrastructure to be established. “Today’s news provides an answer to institutional demand for Bitcoin. It’s great news for the crypto market and supports our belief that Bitcoin is an unstoppable technology. It is digital gold, long term Look, I believe it represents the intersection of finance, economics and technology. “Today’s news is positive for retail investors as it will support the growth of Bitcoin as an asset class, but I believe most regular investors will still want to continue buying and holding real Bitcoin.”

Troy Cross, professor of philosophy at Reed College and researcher at the Bitcoin Policy Institute: “Larry Fink is like Constantine, the emperor who converted to Christianity and changed empires and religions forever . You will find some Christians who think that marks the victory of the church, and some who think it is the end of true Christianity. The same goes for Bitcoin. The cultural identity, symbols, and associations of Bitcoin will change. It is inevitable, But also dangerous, given its cypherpunk roots and potential as a tool for freedom. Let’s see if the Bitcoin community can educate with the focus on NGU (Number Go Up) and trusted intermediaries dominating the narrative People about the concept of permissionless, censorship-resistant and autonomous sovereignty."

Charles d'Haussy, CEO of dYdX Foundation: "Introducing new opportunities for institutional investors through Bitcoin spot ETFs Funding will be amplified in derivatives markets. The Bitcoin Spot ETF significantly increases the liquidity and total trading volume of Bitcoin trading. This in turn will make it easier and more efficient by making hedging positions, entering and exiting trades, and executing complex options strategies Cheap, benefiting the derivatives market (the crypto derivatives market is about 10 times larger than the crypto spot market)."

Joshua Davila (pseudonym: Blockchain Socialist), author of "Blockchain Activism" : "The creation of ETFs and the previous launch of Bitcoin institutional financial products is a form of co-optation of the status quo system. If more evidence was needed that cryptocurrencies are not immune to being completely swallowed up by the financial system they once sought to destroy."

Valkyrie CEO Leah Wald said: “Today’s approval of the Bitcoin Spot ETF is a landmark moment for the digital asset industry. It is a bold statement that cryptocurrencies are here to stay. Admit it. This wouldn’t have been possible without nearly a decade of work and commitment. Countless people believe in the future of our industry and see cryptocurrencies as an integral part of the global financial ecosystem. I’m excited for what the future holds , the launch of the ETF is just the beginning of continued widespread adoption and education about cryptocurrencies.”