CoinShares’ chief strategy officer, Meltem Demirors, believes that the approval of Bitcoin exchange-traded funds (ETFs) in the spot market will not negatively impact the leading cryptocurrency. In an interview with CNBC Television, Demirors argued that ETF approval would not be a “sell-the-news” event because the market has already priced in the expectation. She explained that the potential approval of Bitcoin ETFs would bring increased accessibility for institutional investors and allow them to easily gain exposure to the asset. Demirors also pointed out that the approval of ETFs would provide regulatory clarity and legitimacy to Bitcoin. Additionally, she highlighted the potential positive impact on the broader market, as ETF approval would serve as a catalyst for further innovation and adoption within the crypto space. Demirors’ outlook contradicts the notion that the approval of Bitcoin ETFs would trigger a bearish reaction in the market.
With the Securities and Exchange Commission (SEC) having multiple Bitcoin ETF proposals under review, the anticipation for their approval has been steadily growing. Investors and analysts have often debated whether ETF approval would lead to a sell-off as a result of market expectations being priced in. However, Demirors offers a different perspective, suggesting that the approval of Bitcoin ETFs would be a positive development for the crypto market. Her argument centers around the increased accessibility and legitimacy that ETFs would bring, while also acknowledging the potential catalyst effect on innovation and adoption. Only time will tell how the market will truly react, but Demirors’ viewpoint adds a new layer to the ongoing discussion around Bitcoin ETFs.
