At present, most institutional investors seem to take an increasing interest in Bitcoin as an investment asset. Ernst and Young is an international blockchain project that is also following the news and latest developments around Bitcoin spot ETFs.
The blockchain head of the firm, Paul Brody, recently told the media that approval of a Bitcoin spot ETF can drive massive institutional demand from investors across the globe. Brody stated that institutional investors have a lot of pent-up demand which is barred on account of regulatory constraints in the United States.
He retained that regulators have not approved Bitcoin ETF for years which has led to the existing position. He was speaking to the media on 23rd December retaining that trillions of dollars in institutional funds can flow into Bitcoin as soon as a spot Bitcoin ETF is approved.
He retained that funds from institutional investors will not translate in the Bitcoin market without regulatory products such as ETFs. He stated that investors are purchasing Bitcoin as an asset but not as a tool for payment.
Changing Regulatory Landscape in the US
Speaking to the media, Brody reflected on the changing landscape of cryptocurrency regulations in United States. Thus far, the Securities and Exchange Commission has not passed a single Bitcoin spot ETF.
However, the top financial firms around the globe such as Grayscale Investments, BlackRock, Ark Invest, and Fidelity have filed for multiple Bitcoin ETFs. Court ruled in favor of Grayscale which sued SEC for delaying the approval of Bitcoin ETF.
The trust has filed S-3 form for registration statement with SEC to list Grayscale Bitcoin Trust as an ETF on New York Stock exchange Arca.
Bloomberg blockchain analyst Eric Balchunas pointed out the amendment of spot Bitcoin application from Ark Invest and 21Shares. He retained that these edits were positive signs that strengthen the possibility of approval.
He also noted that ETF amendments taking place during October are a response to the reservations from Securities and Exchange Commission.
Edward Snowden’s Address to Bitcoin investors at Genesis Stage Hall in Amsterdam
Edward Snowden talked about Bitcoin at the Genesis Stage Hall in Amsterdam. He talked about the importance of Bitcoin during a time when government surveillance is increasing in every walk of life.
He also noted other concerning factors for people such as fiat currencies and limited access to financial services and education. The whistleblower mentioned decentralized projects such as Bitcoin and Nostr as a way for individuals to gain more individual autonomy.
Unlike Bitcoin proponents, he advised users to focus on the decentralized aspect of Bitcoin rather than BTC price. He claimed that Bitcoin plays an important role in the development and evolution of finance and payments.
A considerable amount of people attended the conference. He used Bitcoin to pay for servers in 2013 that relayed information to journalists leading to the revelation of NSA probing. He claimed that investors should pay attention to fundamentals. He claimed that Bitcoin ETFs add more subordination by adding the product to the traditional financial sector.
On the other hand, he was also critical of Bitcoin for having privacy problems and talking about tools such as CoinJoin and mixers to retain transaction privacy. However, he retained that having to depend on obfuscation tools is indicative of unfreedom.