The recent approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) is likely to trigger a buying rally in the cryptocurrency market, according to EY Global Cryptocurrency Leader Simon Rolph.
Rolph said that the approval of the first-ever Bitcoin spot ETF would likely spark a fresh wave of institutional investors looking to get exposure to the digital asset. He also pointed out that the approval marked a major milestone for the industry, adding that the SEC’s approval of a Bitcoin ETF had been long anticipated by the crypto community.
Rolph said that investor demand for a regulated Bitcoin ETF had been growing consistently, and the recent approval will surely help to attract new investors. He added that the ETF could now enable several investors, who had been waiting on the sidelines, to get directly involved in the space.
The ETF, which is set to be listed on the NYSE Arca exchange, is a major development as it will provide regulated access to the crypto asset class. The ETF is supported by a robust trading infrastructure, which is expected to offer deeper liquidity to the ETF fund. This, in turn, could be a major benefit for institutional investors as it raises security levels.
The approval of the first-ever Bitcoin spot ETF is a major accomplishment for the industry and will likely be seen as a validation of the digital asset’s long-term potential. Many investors have been awaiting the regulators’ approval before investing in the market, and the approval of the ETF is regarded as one of the key milestones to attract mainstream adoption.