Despite the euphoria surrounding spot bitcoin ETFs, investors have urged caution

The first ever spot bitcoin ETF was listed on Wall Street on Thursday. Despite the excitement in the sector surrounding these new products, some experts remain cautious.

In a decision issued Wednesday evening, the SEC (Securities and Exchange Commission) approved 11 bitcoin ETF applications, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck. These new products went public on Thursday, January 11th on Wall Street. “The approval of these Bitcoin spot ETFs is a pivotal moment in the evolution of the cryptocurrency market,” said Brett Tejpaul, director of Coinbase Institutional.

“As leading asset managers bring the world of digital assets within reach of millions through this regulated product, these ETFs are poised to drive growth in the sector and unlock trillions in new capital,” he added.

Bitcoin over $100,000?

Eric Demuth, CEO and co-founder of crypto-activity Bitpanda, believes that Bitcoin could reach the $100,000 mark this year, which would represent a significant increase from its all-time high of $69,000 in November 2021.

According to him, this increase could be supported by additional liquidity in the US system, combined with factors such as the expected April “halving” of bitcoin and a possible decrease in interest rates.

“More liquidity and volume will drive bitcoin’s price higher in the long term and could also help reduce its volatility,” he said in a statement.

Geoff Kendrick, director of digital asset research at Standard Chartered, shares Eric Demuth’s views on Bitcoin’s potential.

“If ETF-related inflows play out as we expect, we believe a level close to $200,000 is possible by the end of 2025,” he said, estimating that $50 billion to $100 billion could flow into new U.S. ETFs by the end of the year. year.

Attention

But some experts are cautious, like Marion Laboure, a strategist at Deutsche Bank Research. “Basically, a spot bitcoin ETF simply provides standardized access to a digital asset as an investment product without having a fundamental impact on bitcoin,” he says.

“Only time will tell if greater adoption will lead to transformative outcomes for the cryptoecosystem and the financial system. The approval of the ETF opens a new chapter for bitcoin prices for now, although volatile conditions are likely to remain,” he adds.

Spot Bitcoin ETFs have already been available in other markets, notably Canada and Europe, but have so far failed to attract the interest of large investors.

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