The approval of Bitcoin ETFs can open the doors for further derivatives products and enhance BTC’s role in decentralized finance, but its long-term impact may go far beyond financial markets.
Ten years after Cameron and Tyler Winklevoss first applied to launch the Winklevoss Bitcoin Trust in 2013, a spot Bitcoin (BTC) exchange-traded fund (ETF) has finally launched in the United States. The U.S. Securities and Exchange Commission approved nine ETF applications from several major asset management firms on Jan. 10.
Market analysts anticipate an investment inflow of around $10 billion to the ETFs in 2024. The historic decision cements the status of Bitcoin as a legitimate asset and sets the stage for a range of derivative investment products, including potential leveraged and short Bitcoin ETFs.
Aside from that, the decision can potentially strengthen Bitcoin’s role within the decentralized finance (DeFi) space, particularly as a collateral asset, creating opportunities to further integrate the crypto industry with traditional financial markets.
