Coinbase Expects Spot Bitcoin ETFs to Add Billions to Crypto Market — Says SEC Approval Possible by Year-End

Cryptocurrency change Coinbase says spot bitcoin exchange-traded funds (ETFs) might add billions of {dollars} to the overall crypto market cap. Coinbase additionally believes that the possibilities of a number of spot bitcoin ETFs being accredited by the U.S. Securities and Exchange Commission (SEC) earlier than the top of 4Q23 “have sharply improved.”

Coinbase’s Spot Bitcoin ETF Prediction

Coinbase Institutional, a division of crypto change Coinbase (Nasdaq: COIN) that gives options for institutional traders, launched its November Monthly Outlook titled “Why an ETF Matters” on Sunday.

David Duong, Head of Institutional Research on the cryptocurrency change, detailed that spot bitcoin exchange-traded funds (ETFs) can take BTC “additional into the mainstream, placing it inside attain of thousands and thousands of traders in broker-dealer, RIA [registered investment advisor] and tax-advantaged account buildings.” He continued:

In the long term … spot bitcoin ETFs might add billions of {dollars} to the overall crypto market cap in addition to spark new potential investments for the asset class.

“While this may take time, we anticipate [spot bitcoin] ETFs to put the muse for a extra regulated atmosphere, larger inclusion, and a fabric progress in demand,” he opined.

“The influence of a number of spot bitcoin ETF approvals are important, as it is going to open up a large alternative for the wealth administration neighborhood, which handles over a 3rd of all wealth within the U.S.,” the Coinbase head of institutional analysis described. “Moreover, we predict ETFs can probably result in new monetary merchandise (like lending and derivatives).”

The Coinbase report additional particulars:

In our view, possibilities have sharply improved that a number of spot bitcoin exchange-traded funds (ETFs) could also be accredited by the U.S. Securities and Exchange Commission (SEC) earlier than the top of 4Q23.

“Typically, the SEC extends its resolution window to the furthest extent allowed by its regulatory framework, which on this case can be the ultimate deadline of January 10, 2024, for the ARK-21Shares Bitcoin ETF utility,” the Nasdaq-listed crypto change defined. “However, the present timeline has been sophisticated by gridlock within the U.S. House of Representatives. A possible authorities shutdown on November 17 would furlough over 90% of SEC employees. As a outcome, we predict there may be at the moment an open window for the SEC to be proactive forward of a attainable shutdown.”

Coinbase additional famous, citing Bloomberg Intelligence: “In current weeks, we’ve seen numerous candidates amend their prospectuses with up to date language, suggesting significant dialogue between these groups and the SEC. Although that is commonplace for such functions in different asset lessons, it is a first for crypto.”

Do you agree with Coinbase that spot bitcoin ETFs will add billions to the crypto market cap and do you assume the SEC will approve some functions this 12 months? Let us know within the feedback part beneath.