Spot Bitcoin ETF Expected by Q2 2024, Followed by Spot Ether ETF
Hashdex, one of the asset managers competing for a spot Bitcoin ETF in the United States, predicts that the first spot Bitcoin ETF will launch by the second quarter of 2024. They also anticipate a spot Ether ETF to follow shortly after. According to Hashdex’s U.S. and Europe head of product, Dramane Meite, the narrative surrounding the spot Bitcoin ETF has shifted from “if” to “when” in 2023.
Approval vs Launch
Bloomberg ETF analysts James Seyffart and Eric Balchunas have placed a 90% likelihood on the approval of spot Bitcoin ETFs before January 10, 2024. However, Seyffart clarifies that this refers only to the 19b-4 applications and that a separate form known as the “S-1” must also be approved for an ETF to launch. This means there could be a delay of weeks or even months between approval and actual launch.
Legacy Asset Managers Entering the Crypto Market
In Hashdex’s report, Meite states that spot Bitcoin and Ether ETFs will allow traditional asset managers with established brands to offer crypto products to their customers for the first time. This is expected to tap into a $50 trillion market, larger than Europe, Canada, and Brazil combined. Meite believes that most interest in single-asset ETFs will focus on Bitcoin and Ether due to their name recognition and lack of differentiation among existing players.
Hot Take: Crypto Market Set for Major Growth with Spot ETFs
The anticipated launch of spot Bitcoin and Ether ETFs in the US is expected to have a significant impact on the crypto market. With traditional asset managers entering the space, a $50 trillion market could be unlocked, attracting new investors and driving further growth. This development signals the growing acceptance and mainstream adoption of cryptocurrencies as legitimate investment assets. As the regulatory landscape continues to evolve, more investors will have access to crypto products through familiar and trusted financial institutions. This is a major step forward for the industry and could pave the way for even greater crypto adoption in the future.
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