Crypto News– Coinbase: In recent weeks, Bitcoin and various cryptocurrencies, including major players like Ethereum and XRP, have experienced a significant surge, propelled by escalating excitement surrounding a potentially pivotal development linked to BlackRock. The Bitcoin price has soared past $36,000 per Bitcoin, reaching levels not seen since mid-2022, following what some insiders are calling a BlackRock-induced “nuclear winter.” There are hints of an even more substantial shock on the horizon, one that could have reverberations impacting Ethereum and XRP.
Coinbase Points to a ‘Massive’ 48 Trillion Dollars Opportunity Amidst Bullish Trends in Bitcoin, Ethereum, XRP, and Crypto Markets
Researchers from Coinbase, the largest U.S. Bitcoin and cryptocurrency exchange, have now weighed in on the situation. They predict that the approval of a long-awaited Bitcoin spot exchange-traded fund (ETF) could act as a catalyst, paving the way for the $48.3 trillion U.S. wealth management industry to immerse itself in the burgeoning crypto market.
“In the long run… spot Bitcoin ETFs could add billions of dollars to the total crypto market cap as well as spark new potential investments for the asset class,” stated David Duong, the head of institutional research at Coinbase, in the exchange’s November market report, as reported by Coindesk.
Duong emphasized the significant impact that one or more approvals of spot Bitcoin ETFs could have, describing it as a gateway to a massive opportunity for the wealth management community, which oversees over a third of all wealth in the U.S. Recent research from Galaxy Digital estimates this wealth at a staggering $48.3 trillion.
“We think ETFs can potentially lead to new financial products (like lending and derivatives),” Duong added, expressing optimism about the prospect of a long-awaited Bitcoin spot ETF gaining approval from the U.S. Securities and Exchange Commission (SEC) before the year’s end. This optimism has notably increased since BlackRock, the world’s largest asset manager overseeing around $10 trillion on behalf of clients, submitted its groundbreaking application for a Bitcoin spot ETF in June, with Coinbase serving as its custodian.
As the Bitcoin price continues its upward trajectory in 2023, fueled by BlackRock’s pivotal filing, the crypto community is eagerly awaiting the potential ripple effects and transformative possibilities that a Bitcoin spot ETF approval could bring, not only for Bitcoin but for the broader crypto market.
Empowering Diversity: Coinbase Looks Ahead to Bitcoin Spot ETFs as Catalysts for Inclusive Crypto Investment
Coinbase, in a report on Monday, highlighted that the potential approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States could usher in a new era for cryptocurrency markets, welcoming diverse classes of investors. According to the report, this includes registered investment advisers (RIAs), retirement funds, and institutions that, historically, have faced barriers in accessing the cryptocurrency asset class.
The significance of spot Bitcoin ETFs extends beyond merely attracting new capital to the sector. As stated by David Duong, Coinbase’s Head of Institutional Research, in the report, “The opportunity is potentially much greater than just enabling new capital to access the crypto market.” ETFs have the potential to alleviate restrictions for large money managers and institutions, enabling them to buy and hold Bitcoin. This, in turn, is anticipated to enhance liquidity and contribute to improved price discovery for all participants in the market.
Moreover, the report suggests that having an investment vehicle that meets “key regulatory and compliance requirements may also open the door to new products.” This could lead to a proliferation of crypto offerings tailored for accredited investors, thereby expanding adoption within the cryptocurrency space.
Looking ahead, Coinbase envisions that the approval of spot Bitcoin ETFs could have a substantial impact, potentially adding billions to the total crypto market capitalization. The report concludes that ETFs are poised to lay the foundation for a “more regulated environment, greater inclusion, and a material growth in demand” over the long term.