“Blockchain technology isn’t just a more efficient way to settle securities. It will fundamentally change market structures, and maybe even the architecture of the Internet itself.” -Abigail Johnson, CEO, Fidelity Investment
One week into trading after 11 Bitcoin ETF tickers hit the market. Exchange rates aren’t exactly looking as green as many had hoped for (1/19/2024)… It’s leaving many wondering what the overall effect of these approvals will bring to the crypto sphere in the future.
There’s been all sorts of speculation around these ETFs. Talks of moon candles, buy the hype, sell the news… Seems like we’ve heard it all. One thing is certain though: This was a historic event.
Coming In Hot
Despite the continued FUD, Bitcoin is here to stay, and cryptocurrencies are now taken more seriously by regulators as a true asset class. The approval shows this to be true, not to mention the huge win for Ripple earlier in 2023. Legislators have fought for the past decade to keep these decentralized projects from rising above the system in place. They haven’t been able to stop the movement though. No matter how much they continue to say that these cryptos are used in unethical manners, they know that they can’t keep them at bay. They had to cave and will probably continue to do so, though they are fighting hard. It’s no wonder why the SEC has a number of other cases open against the decentralized realm: it’s coming in fast.
Regulators and Financial institutions aren’t the only ones who have their eyes set on DeFi. They know there’s a market for opening up to a wider lens that’s only going to boom in the months to come- that’s WHY they’re preparing. After ETF approval, retail investors now have confidence in not only Bitcoin, but every other credible and legitimate decentralized project out there.
The Fight Continues.
There lies another issue with regulators though. There’s so many projects out there that offer similar and more elaborate financial solutions than Bitcoin. These other cases by the SEC? These will be historic in their own rite. Bitcoin may have the status as ‘digital gold’ but the cases are going to be definitive in what is what in the realm of DeFi. Security or Currency? Is it all legal or did these entities break the law by not filing properly with the SEC? It’s not just the specific tokens or projects under fire- it’s the exchanges that offer them that they’re going after. The war rages on for crypto, and it’s going to be huge when rulings are finalized.
Fight To The Finish
Though adversity continues to knock as we push towards a decentralized economy, hope endures. The market will greatly benefit with these ETF approvals, and it’s one step closer to overall acceptance of this class of assets. However, the fight has only just begun. Just like SEC v Ripple– it’s not just an attack on one entity it’s an attack on the industry as a whole. We have a long way to go, but the market always wins. Always.
