Bitcoin Spot ETF Approval Likely to Trigger Buying Rally: EY Executive
The approval of a cryptocurrency-backed exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) would likely trigger a buying rally, according to a senior executive at EY.
Amrita Chintakunta, the U.S. Wealth and Asset Management leader at the Big Four accounting and consulting giant, believes that the approval of a bitcoin ETF would help bring in new capital to the crypto market. She said such a move would make it “much easier” for institutional investors to get involved in the industry, adding that “it would be a great thing for the industry overall.”
Chintakunta noted that with the approval of a bitcoin ETF, retail investors would also be able to come in and that would help fuel a buying rally. She added that the regulatory clarity that the approval of an ETF would bring would encourage more institutional players into the market.
Chintakunta said that cryptocurrency products such as ETFs and derivatives are key for the market’s long-term growth, and noted that the stricter regulation of such products would also attract more institutional investors. She believes that the introduction of such products will also help reduce the market’s volatility, which will in turn help support a more sustained rise in the prices of cryptocurrencies.