The SEC will approve a similar tool based on Ethereum. Crypto products market assets under management will grow from $41 billion to $600 billion. The integration of TradFi and the industry will continue. The development of Ethereum will create the preconditions to attract one billion users
The exact timing of the Bitcoin spot ETFs launch is still unknown, but it is very likely that it will begin in the second quarter of 2024. This forecast is contained in the Hashdex review for 2024.
Hashdex, a global pioneer in crypto asset management, posted on December 4 the following via X (formerly Twitter):
“In our latest Hash Insider
- Hashdex releases our 2024 #Crypto Investment Outlook
- SEC continues its work on #spot #bitcoin ETFs
- UK asset managers given go-ahead to launch ‘tokenized’ funds.”
According to experts, investors will receive a similar product based on Ethereum.
The day before, the SEC delayed consideration of Grayscale’s application to convert a trust based on the second-largest cryptocurrency into a spot exchange-traded fund.
On November 16, the Commission made a similar decision regarding proposals by Hashdex and Grayscale to launch a spot ETF based on digital gold. The regulator is currently considering 13 such applications.
The Buzz Around ETFs
In November, the word “bitcoin” appeared in 1,074 SEC filings, the highest number ever recorded, according to The Block. The figure is 32.6% higher than the previous peak in May 2023 (810).
According to Hashdex, the approval of the tool will open a $50 trillion market to US retail and high-net-worth investors, more than Europe, Canada and Brazil combined. These products already exist in these jurisdictions.
For the first time, traditional asset managers with thousands of employees and trusted brands will offer Bitcoin ETFs to their clients. The four largest asset managers in the world [Franklin Templeton, Fidelity, BlackRock, Invesco] with AUM ~17 trillion dollars have submitted corresponding applications,” – says the report.
Experts explained that this will create the conditions for widespread acceptance of cryptocurrencies in distribution channels and among financial advisors, helping digital assets become mainstream as they are introduced into existing distribution channels and model wallets.
Market Estimates
According to analyst calculations, the AUM of the crypto products market will increase from the current $41 billion to $600 billion. In addition to the registration of spot exchange-traded funds, the determining factors will be the elimination of regulatory uncertainty by the US Congress, the dynamics of macroeconomic indicators and the halving.
Experts also predict active penetration Commerce into the crypto industry and its integration. In 2024, they expect new technological improvements that will guarantee the expansion of networks and create the preconditions to attract a billion new users.
Ethereum as a Driver
Analysts pointed to Ethereum as the relevant technological infrastructure. In his opinion, the development of the ecosystem of the second cryptocurrency by capitalization will copy the trajectory of the number of Internet users.
Previously, the SEC began collecting public comments on spot Bitcoin ETFs. Lawyer Scott Johnson saw this as a sign of the regulator’s willingness to simultaneously approve all applications for the instrument by January 10, 2024.
In November, representatives of the Commission and BlackRock held a meeting in which they discussed the details of a spot exchange-traded fund based on the first cryptocurrency. Prior to this, the regulator met with Grayscale management to discuss converting its Bitcoin trust into an ETF.
By Leonardo Perez
