Bitcoin (BTC) exchange-traded funds (ETFs) have garnered significant attention in the financial market, and the race for their approval in the United States is well underway. Hashdex, one of the 13 asset managers vying for the spot, is optimistic about the future. According to Hashdex’s U.S. and Europe head of product, Dramane Meite, a spot Bitcoin ETF is expected to land in the U.S. by the second quarter of 2024. Furthermore, Meite suggests that a spot Ether (ETH) ETF is likely to follow suit. This outlook stems from the shift in the narrative surrounding ETFs, with the question of “if” being replaced by “when.”
While Hashdex projects the arrival of a spot Bitcoin ETF, the exact timing remains uncertain. The fluctuating landscape of cryptocurrency regulations has left investors and industry experts guessing. The transformation of the question around ETFs from “if” to “when” signifies a growing confidence in their eventual approval, but the timeline remains elusive. Nevertheless, Meite believes that by the second quarter of 2024, U.S. investors will be able to access a spot Bitcoin ETF. The introduction of a spot Ether ETF is expected to follow suit.
Hashdex is among the 13 asset managers that have submitted applications for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC). The prospect of their approval was given a 90% likelihood by Bloomberg ETF analysts James Seyffart and Eric Balchunas in the days leading up to January 10, 2024. However, Seyffart emphasizes that the approval of the 19b-4 applications is only one step towards launching an ETF. The separate Form S-1 must also gain regulatory approval. The approval process may create a gap between approval and the actual launch, potentially spanning weeks or even months.
If approved, the introduction of a spot Bitcoin ETF in the U.S. could have far-reaching consequences for the cryptocurrency market. Seyffart believes that this milestone could unlock a market worth up to $50 trillion. This market valuation exceeds the combined value of Europe, Canada, and Brazil’s crypto exchange-traded products. The arrival of a spot Bitcoin ETF in the U.S. would present a significant opportunity for investors and contribute to the further mainstream adoption of cryptocurrencies.
The anticipation surrounding Bitcoin and Ether ETFs in the U.S. reflects the growing interest and acceptance of cryptocurrencies within traditional investment circles. As regulatory frameworks continue to mature, the demand for regulated investment products like ETFs is expected to increase further. The approval and launch of spot ETFs would provide investors with a more accessible and convenient means of entering the cryptocurrency market, potentially attracting a broader pool of participants and capital.
The race for approval of a spot Bitcoin ETF in the United States is well underway, with Hashdex among the asset managers eagerly awaiting regulatory decisions. While the exact timing remains uncertain, the shift in the narrative from “if” to “when” indicates a growing confidence in the ultimate approval of ETFs. If these predictions hold true, U.S. investors may gain access to a spot Bitcoin ETF by the second quarter of 2024, with a spot Ether ETF following suit. The potential impact on the market and the broader implications for the adoption of cryptocurrencies make this a development worth closely monitoring.