EXCLUSIVE: Bitcoin ETF's Potential Approval Looms Large — 'The Market Has Not Realized How Big A Deal This Is'

Matt Hougan, chief investment officer at Bitwise Asset Management, on Tuesday emphasized the monumental yet underappreciated impact of a potential spot Bitcoin BTC/USD ETF on the market. He asserted that the market has not fully grasped the magnitude of this development, akin to the transformative journey of gold ETFs.

Hougan was speaking at Benzinga's Future of Digital Assets event in New York City, along with Brooke Stoddard, vice president of Client Team at Grayscale Investments, Ryan Louvar, chief legal officer and head of Business and Legal Affairs, Digital Assets at WisdomTree and Todd Kuehl, head of Compliance, Americas at Invesco US. The discussion was moderated by Pat McEvoy, from Canaccord Genuity.

A livestream of the conference is available here.

Hougan On Market Underestimation:

"The market has not realized how big a deal this is," Hougan said.

He elaborated on the substantial influence a Bitcoin ETF could wield, akin to the transformation gold experienced. "Gold was at the exact same point that Bitcoin is at in 2003 before the gold ETF launched in the U.S. It took 5000 years to get to $400, and in the last 20 years since an ETF, it's gone to $2000."

Predictions For Bitcoin's Future:

Hougan's optimism for Bitcoin's future was evident. He suggested a significant influx of interest and investment in Bitcoin following the ETF's introduction, a scenario not yet reflected in current market prices.

McEvoy On Crypto Market Dynamics:

McEvoy set the stage for the discussion, noting the recent volatility and excitement in the crypto market, especially surrounding Bitcoin spot ETFs.

He acknowledged the negative market sentiment in recent times but pointed to a resurgence of interest, signaling a new era for cryptocurrencies.

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Stoddard's Take On Grayscale's Evolution:

Stoddard delved into the journey of Grayscale Bitcoin Trust and its transition towards becoming an ETF. He detailed the process, saying,

"Our flagship product is a ten-year-old product at this point and hopefully soon to be uplisted to NYSE ARCA where it would trade as a Bitcoin spot ETF."

Louvar On Diversification And Access:

Louvar focused on the diversification benefits of Bitcoin within a portfolio. He emphasized the importance of providing mainstream access to Bitcoin and Ethereum ETH/USD, likening it to traditional assets like equities and fixed income.

Kuehl On Regulatory Perspectives:

Kuel provided insights into the regulatory challenges and processes involved in launching a spot Bitcoin ETF. He highlighted the intricate process and its implications for investors and the market, underscoring the SEC's role in this significant transition.

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Photo: Piboon Thongtanyong