Coinbase Report: "Bitcoin Spot Etfs Will Expand Investor Spectrum"

According to the report, spot ETFs can lay the foundation for a more mature market in terms of regulation.

According to Coinbase's latest report, the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States could diversify investor classes in the cryptocurrency markets. This includes licensed investment advisors (RIAs), retirement funds, and institutions that previously couldn't access the cryptocurrency asset class.

However, the contribution of spot ETFs to the sector is not limited to new fund inflows alone. David Duong, the President of Institutional Research at Coinbase, shared the view that "the easing of buying restrictions on Bitcoin by significant financial institutions would provide liquidity for all market participants," emphasizing that this opportunity represents more than just capital.

Duong stated, "Access to an investment vehicle that meets regulatory requirements can increase existing crypto offerings for accredited investors and open new doors that could expand adoption." The report also highlighted that the U.S. Treasury bond market is considerably unsettled and the banking sector remains highly vulnerable, making Bitcoin more attractive as an "alternative to the traditional financial system" as we enter 2024.