The cryptocurrency created by Satoshi Nakamoto is awaiting the determination of the financial regulator in the United States, the Securities and Exchange Commission (SEC) in the coming weeks regarding the issuance of ETFs, something totally new for the cryptoasset market. A not minor fact is that this year bitcoin celebrates 15 years of its creation and trading in the market.
Companies such as JP Morgan, BlackRock, and others have been behind these applications. However, the regulatory authority postponed the decision, requesting additional information. As a result, it was forced to make a decision in the first weeks of January, the answer to which could be known in the next few days.
What will ETFs allow?
ETFs will allow retail investors to invest in a digital asset with lower risk if they pay commissions linked to the product.
Bitcoin is a digital asset with a global impact. Achieving recognition from the SEC would provide both visibility and increased demand. In addition, investors would take it as a measure to diversify and control risks. This would give the cryptocurrency greater regulatory support.
Additionally, this could lead to increased use of the cryptocurrency as a means of payment, as investors become more familiar with it.
Bitcoin has both limited supply and liquidity.
Bitcoin spot ETFs imply actual demand for crypto assets, generating managers’ need to buy cryptocurrencies.
An increase in the demand for an asset is planned with a limited future supply. The next bitcoin Halving is scheduled for April this year. This event occurs every four years and is expected to produce a cap of about 50% in rewards for miners. A shortage of assets may occur which could generate a further increase in demand.
