Get ready, the crypto market is positively buzzing these days! The Securities and Exchange Commission (SEC) appears to be shifting towards this direction and moving closer to a uniform framework for Exchange Traded Funds (ETFs). The development is fueling speculation that a new age of digital asset products is dawning. That last part goes hand in hand with a historic shift in investor sentiment. The total market capitalization now stands at $3.49 trillion, representing a loss of 1.35%. At the same time, the spot volume has amounted to $45.17 billion, which represents an increase of 5.65%.
So much anticipation for Spot ETFs has been brewing for 240 days. Bitwise Chief Investment Officer (CIO) Matt Hogan believes that inflows have the potential to be as large as $10 billion. This bullish projection comes at a peak of activity, with 54 separate crypto ETF applications now on record with the SEC. If and when these ETFs get approved, they will likely open the floodgates for institutional investment into crypto. It might even lure in some additional retail investors ready to get on board.
The SEC’s advance in the direction of a standardized framework towards ESG generally is a hopeful sign of a more amenable regulatory climate. This represents a shift from the prior approach, which sought to take a more cautious and restrictive approach to digital asset products. The proposed new framework will make the creation process for ETFs much easier. This creates an easier path for manufacturers to bring these products to market.
The change in regulatory strategy is happening alongside a dramatic pivot in investor sentiment, and an overall contraction in crypto markets. Importantly, these institutional investors are refocusing their interests from Bitcoin to Ethereum. This kind of movement is an encouraging sign that ETH might be gearing up for a bull run. Ethereum’s continuing developments are powering this rotation. Its increasing usefulness, especially in decentralized finance (DeFi) and other blockchain based applications, is one big reason.
