According to Matrixport, the regulatory developments seen in the example of Binance yesterday are preparing to reshape the cryptocurrency environment, and this situation will have significant consequences for the approval of a Bitcoin Spot ETF in the US. According to the latest defense agreement report, which includes Binance CEO Changpeng Zhao CZ, it indicates a potential increase in compliance efforts across the industry, paving the way for institutional adoption and a bullish outlook for Bitcoin.
Regulatory Impact Increases Optimism for Bitcoin Spot ETF Approval
The agreement is expected to lead to a paradigm shift in the cryptocurrency field. It is likely that there will be more focus on compliance with regulations, strengthening the programs of more exchanges, and making surveillance-sharing agreements. This change is also considered crucial for the long-awaited approval of a Bitcoin spot ETF in the US.
As the industry prepares for these changes, the benchmark to be followed in 2024 may no longer be the comparison of trading volumes between centralized and decentralized exchanges. Instead, the emphasis may shift towards volumes traded on legal and illegal cryptocurrency exchanges. This change reflects a broader trend towards compliance and transparency in the industry.
Spot Bitcoin ETF: Expectations Rise
With the reshaping of the industry environment by the agreement, expectations for the approval of a spot Bitcoin ETF have increased and potentially reached 100%. The cryptocurrency sector is preparing to comply with regulatory standards created by traditional financial firms. This move towards compliance is expected not only to pave the way for a spot Bitcoin ETF but also to strengthen Bitcoin’s position as a safe haven asset in institutional portfolios.
According to the report, FTX exchange, managed by a team compliant with US securities laws, is potentially resuming operations in the third quarter of 2024. This change signifies a departure from the unregulated realm of the past and ushers in a new era of fully legal and compliant cryptocurrency exchanges tailored to institutional players. The expectation of an influx of 24-50 billion dollars into any listed Bitcoin ETF in the US highlights the increasing institutional interest in the cryptocurrency market.
As institutions prepare for entry, the sanctions actions by US institutions in 2023 are seen as significant steps towards a legal and mature crypto environment. With the support of the macro environment’s institutional demand, 2024 promises to be another groundbreaking year for Bitcoin. According to the report, an interesting expectation is that CZ may return in the bear market next month in 2026.
