Introduction
The CEO of Swan Bitcoin, Cory Klippsten, believes that the introduction of spot Bitcoin exchange-traded funds (ETFs) will help to quieten the loud and flashy marketing tactics that have been prevalent in the crypto space since 2017. Klippsten argues that these ETFs offer a new entry point into the market, free from the influence of well-funded marketing schemes.
The Noisy Funnel
Speaking in a recent interview with Bloomberg, Klippsten explained that the past six years have seen the top of the funnel for Bitcoin adoption filled with noisy marketing tactics funded by venture capital. These strategies have been used to promote and sell various crypto tokens. Klippsten sees Bitcoin ETFs as a cleaner and more reliable way for people to enter the market.
How ETFs Work
Klippsten clarified that ETFs function like an IOU for the product, offering investors a paper form of Bitcoin. However, unlike futures-based alternatives, ETFs require the firm to back investors by purchasing actual Bitcoin. Klippsten believes that this makes ETFs an attractive option for those looking to dip their toes into the world of Bitcoin.
Optimism for ETF Approval
Many crypto analysts, including Klippsten, believe that there is a clear path for Bitcoin ETF approval in January. He suggests that January 8th, 9th, or 10th could be the likely dates for approval, based on signals from the SEC and insiders in the industry. If approved, this could provide a significant boost to the Bitcoin market.
Price Predictions
Standard Chartered, a major bank, recently predicted that the introduction of Bitcoin ETFs will drive the price of Bitcoin up by 165% by the end of 2024. Geoff Kenrick, the bank's head of EM FX Research, West and Crypto Research, believes that the earlier-than-expected introduction of US spot ETFs could lead to further price increases before April 2024.
Overall, the introduction of Bitcoin ETFs is expected to have a significant impact on the crypto market, providing a more reliable and regulated entry point for investors.
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