The approval of spot market Bitcoin exchange-traded funds (ETFs) is anticipated to bring in billions of dollars in capital flow into BTC, according to Meltem Demirors, the chief strategy officer of market intelligence firm CoinShares.
During a recent CNBC Television interview, Demirors highlighted the continuous demand for Bitcoin as evidenced by investment flows into crypto exchange products (ETPs). She emphasized that the approval of spot-based Bitcoin ETFs will not result in a bearish market event, as it is expected to fuel further demand for the leading cryptocurrency.
While Bitcoin has a long track record and deep liquidity, Demirors believes that the conditions are not yet ripe for asset managers to start issuing ETFs based on riskier digital assets. She pointed out that there is significant investor demand for crypto ETPs, with over $50 billion in global assets under management, majority of which is allocated to Bitcoin and Ethereum.
The broader crypto market conditions may take some time to reach a level of comfort necessary for the issuance of ETFs based on other crypto assets, according to Demirors.
As of the time of writing, Bitcoin is trading for $44,100. With the potential approval of spot-based Bitcoin ETFs, the crypto industry is poised for an influx of capital, driving further demand for Bitcoin and other leading cryptocurrencies.
