'The flow of new money.' What does the possible approval o | The best crypto signals channel
"The flow of new money." What does the possible approval of Bitcoin ETFs in the USA mean?
According to Bloomberg, the US regulator next week may approve the country's first exchange-traded fund based on bitcoin futures. Experts explained the likely consequences of such a decision
On October 15, Bloomberg, citing its own sources, reported that next week the US Securities and Exchange Commission (SEC) may approve the first bitcoin ETF in the country. The exchange-traded fund, according to the agency, will be based on bitcoin futures. After that, the cost of bitcoin for the first time since mid-April exceeded $ 60 thousand. RBC-Crypto experts assessed how likely this scenario is and predicted what the crypto market expects if the SEC approves the first bitcoin ETF in the United States.
The probability of approval is high
The US Securities and Exchange Commission may well approve one of the applications for a bitcoin ETF next week, according to the head of the data analysis department CEX.IO Broker Yuri Mazur. In his opinion, the country's authorities will have to take this step, because for them it is not only a financial story, but also an image story. Mazur explained that after the total ban of cryptocurrencies in China, the United States became the main haven for digital assets and related companies.
"Cryptocurrencies are unlikely to threaten the financial stability of the United States and the hegemony of the US dollar," the analyst added.
Mazur also recalled that bitcoin futures have been traded on the Chicago Mercantile Exchange (CME Group) in the United States since 2017. According to the expert, regulators had enough time to assess the risks of this instrument for investors and for the financial industry as a whole.
Vladimir Smetanin, CEO of the Swiss financial company Newcent, agreed that the SEC is likely to approve the first bitcoin ETF in the United States in the near future.
Inflow of investments
If the bitcoin ETF is approved in the United States, the next stage of recognition of the first cryptocurrency will begin, which will be an important signal for the market, Smetanin is sure. According to him, an exchange-traded fund based on bitcoin futures will significantly simplify the access of institutional investors to the digital asset market.
In the event of the launch of the first bitcoin ETF in the United States, the crypto market expects a flow of new institutional money, explained the head of the data analysis department CEX.IO Broker. He explained that investors are now looking for various opportunities to invest in the cryptocurrency industry, for example, buying shares of companies that hold bitcoin on their balance sheet.
"This is an indirect and indirect investment, so bitcoin ETF, in our opinion, is likely to be more in demand," Mazur said.
Possible risks
A large outflow of capital from digital assets may occur in November, the analyst of the crypto exchange predicted Currency.com Mikhail Karkhalev. According to him, this will happen if the US Federal Reserve decides to tighten monetary policy and begins curtailing emergency stimulus programs.
"Against this background, capital from risky assets will partially transfer to the US dollar, as well as to US government bonds, the yield on which will grow," Karhalev explained.
