What the Bitcoin ETF bandwagon has to say about the long-term prospects of cryptocurrencies

BlackRock, WisdomTree, and Invesco have just entered the Bitcoin ETF market.

After businesses like WisdomTree and Invesco entered the Bitcoin exchange-traded fund (ETF) market, Bitcoin (BTC) hit the $30,000 level on June 21, 2023. BlackRock, an asset management firm, previously filed for a spot BTC ETF to enter the BTC ETF market. These developments appear to indicate that cryptocurrencies could move toward general acceptance, which has been anticipated for what seems like a very long time.

Raghuram Trikutam, co-founder of Descrypt believes

“this development will have long-term repercussions for cryptocurrency landscape. It can lead to more liquidity and a deeper market as fund managers will be able to deploy funds in crypto space. As for secondary effects, this should bring in research for cryptocurrencies.”

According to reports, WisdomTree submitted the necessary paperwork to the Securities and market Commission (SEC) of the United States (US) in order to launch its BTC ETF on the Cboe BZX market. The company had previously tried to file for a BTC ETF in December 2021 and October 2022, but both attempts had failed. Additionally, Invesco filed a BTC ETF application with the US SEC and the Cboe BZX exchange. It’s thought that Invesco used instances like FTX, Voyager, BlockFi, and Celsius to emphasize the lack of US-based BTC ETFs and how it might lead to other cryptocurrency meltdowns.

It’s believed that the existence of these businesses can assist investors in diversifying their assets for the greatest possible return on their investment. The trend around BTC ETFs has reportedly led to BTC short position liquidations of over $82.67 million, according to the cryptocurrency-based website Coinglass. Many more businesses may be able to enter the market because to this institutional influence on cryptocurrencies, according to experts. Market research has demonstrated a correlation between this update and BTC’s potential to change the landscape of conventional finance.   

According to Rahul Pagidipati, CEO of cryptocurrency exchange ZebPay,

“The outcome should be beneficial to enhance engagement, thereby, raising awareness about digital assets. Furthermore, recent developments in crypto space can help with acceptance for crypto. As interest grows, it can become crucial for investors to prioritise education and research for investment choices.”

Additionally, forecasts for the future show that the expansion of BTC ETFs has paved the way for more Bitcoin ETFs. The Motley Fool, a provider of financial and investing advice, reports that there will be seven additional cryptocurrency exchange-traded funds (ETFs) available in 2023. These are Amplify Transformational Data Sharing ETF, Bitwise 10 Crypto Index Fund, Siren Nasdaq NexGen Economy ETF, First Trust Indxx Innovative Transaction & Process ETF, Bitwise Crypto Industry Innovators ETF, Global X Blockchain ETF, and Global X Blockchain & Bitcoin Strategy ETF.

Rajagopal Menon, vice-president of cryptocurrency exchange WazirX, said in his analysis:

“I think investors are favouring BTC due to its risk-adjusted returns compared to altcoins. BTC’s reputation and market position can make it a safer investment choice in the cryptocurrency landscape. This situation indicates the potential for BTC to continue its trajectory, at expense of altcoins.”

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