Hassan Ahmed, Coinbase country head for Singapore, believes the approval of a spot Bitcoin exchange-traded fund (ETF) will be the catalyst for a “structural market change” for the flagship digital asset.
Ahmed made the statement during a appearance on CNBC International on January 2. He said:
“[The ETFs] are as big a problem as people make them out to be.”
Ahmed added that the ETF hype is more than just a trend and will create a regulated pathway through which trillions of dollars enter the sector that has thus far been “locked out of the asset class.”
SEC makes way for ETF
Ahmed said the SEC is currently making way for the ETFs, which have been in the works for more than a decade. He said it is likely the SEC will provide an update to the industry before the Jan. 10 deadline.
According to the Coinbase executive, the SEC is unlikely to reject the spot ETFs because its “hand has been forced” by approving the futures Bitcoin ETF in the past. Because the two are structurally similar, the regulator has no good reason to continue rejecting them.
He added that the regulator’s recent actions indicate a positive outcome; however, nothing is a ‘done deal’.
Ahmed said once these ETFs are approved, it will further “destigmatize and legitimize” Bitcoin for institutional investors such as asset managers and asset managers in the US, who have been waiting on the sidelines for years.
The ETFs will almost certainly lead to increased demand for the flagship cryptocurrency.
Explosive growth factors
Ahmed pointed to two major catalysts for Bitcoin in 2024: an increase in demand and a decrease in supply due to the upcoming halving. He stated that these factors could lead to explosive growth of Bitcoin.
Ahmed added that demand for Bitcoin block space is rising thanks to the Ordinals and Inscriptions, which has resulted in BTC transaction fees reaching a “relatively high level since 2020.”
According to Coinbase’s director, this trend will lead to additional miner revenue and network security in the long run.
The potential approval of this ETF is seen as a pivotal moment in the cryptocurrency sector, indicating growing adoption and institutional interest in digital assets. This development, Ahmed suggests, could provide a compliant and trusted channel for asset managers and allocators to engage with the asset class.
