- January 11, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Gemini said the spot Bitcoin exchange-traded fund (ETF) approval in the U.S. is “a game-changer for the crypto futures market.”
In a Jan. 11 post on the social media platform X (formerly Twitter), the cryptocurrency exchange explained that the arrival of these ETFs would provide more liquidity and diverse market participation that could redefine the dynamics of perpetual contracts.
This view is quite similar to that of Coinbase, the largest U.S.-based cryptocurrency exchange by trading volume, which previously stated that the approval of a spot Bitcoin ETF will lead to the development of new “compliance-friendly” financial products.
Several market observers have also pointed out that the approval will attract more market capital and “legitimize” BTC investments for traditional investors who are inherently wary of the emerging industry.
“The ETF approval signifies Bitcoin legitimacy and permanence in the financial landscape. Setting the stage for increased participation by authorized participants, exchanges, and custodians,” Gemini’s Head of Institutional Claire Ching said.
The futures market enjoys massive trading volume from crypto traders speculating on the price of digital assets, especially in the weeks leading to the ETF approval. Deribit, a leading crypto options & futures exchange, revealed that its daily trading volume surpassed $5.5 billion on Jan. 10 because of the market anticipation generated by the ETF investment products.
Gemini will play a pivotal role in 7RCC’s environment-conscious spot Bitcoin ETF. The asset manager picked the exchange as the custodian for its anticipated BTC holdings.
Crypto community welcomes ETF approval.
Meanwhile, other key figures in the crypto industry have also shared their perspectives on the ETF approval.
Ripple CEO Brad Garlinghouse acknowledged the historical significance of the moment, stating that it further legitimizes crypto as an asset class. Garlinghouse anticipates the approval will catalyze greater institutional adoption and real-world usage for blockchain and BTC.
Binance CEO Richard Teng also joined the chorus, declaring that the spot Bitcoin approval would introduce Bitcoin to a new class of investors, expanding its reach and impact on the market.
Similarly, Chainlink’s co-founder Sergey Nazarov told CryptoSlate that the “Bitcoin ETF approval has made it clear that traditional financial institutions have a significant role to play in determining how the crypto markets evolve.”
The post Gemini says ETF approval is ‘game-changer’ for crypto futures market appeared first on CryptoSlate.
