Investors ‘abuzz with anticipation’ for spot bitcoin ETF approval: CME

CME says they’re seeing “institutional growth” in crypto, and a “renewed interest” in bitcoin

article-image

Nikita Sursin/Shutterstock modified by Blockworks

share

Gio Vicioso, CME’s head of crypto, told Blockworks that his firm has “been prepared” for the bitcoin rally taking place on Tuesday. 

Bitcoin briefly touched $35,000 on Monday before settling around $33,000. The rally is fueled largely by the hope for a spot bitcoin ETF approval — something that the market may not get until early next year. 

“The investor community in general is really abuzz with anticipation for the approval of a spot bitcoin ETF,” Vicioso said.

It’s not just retailers either. Vicioso told Blockworks that a very diversified mix of participants are coming into the space, and “those participants include both crypto natives as well as crypto focused funds. But we’re also seeing some of the institutional macro hedge funds, some banks, active in this space as well.”

There’s a “renewed interest” and “appetite” for crypto — largely bitcoin, he continued.

Read more: Is bitcoin’s ETF-fueled rally to $35K premature? Well, maybe

Vicioso’s comments are backed up by CME’s third-quarter report, which found that interest in both bitcoin and ether derivatives hit highs

While Vicioso’s comments align with other analysts that the rally may have some legs to stand on, it may be too soon to say that crypto spring is here. 

“It’s difficult to predict the future,” he said. But the momentum that the market saw after CoinTelegraph falsely reported that BlackRock’s bitcoin ETF had gotten the green light from the US Securities and Exchange Commission shows that the “investor [community] is preparing themselves for that particular event and positioning portfolios accordingly.”

Vicioso isn’t alone in his thinking, either. 

“I’m not sure it’s time for crypto spring just yet, but crypto seems to have a lot of positive catalysts ahead of it,” eToro’s Callie Cox told Blockworks Tuesday.

Meanwhile, Michael Silberberg, head of investor relations at Alt Tab Capital, thinks that this rally — with the potential catalysts of the spot bitcoin ETF approvals and the halving — could last until April of next year. 

“With the [halving] looming on the horizon, Bitcoin acting like a safe haven in the current market, and wealth managers with trillions of dollars entering a market that has only ever reached about a $2 trillion market cap, I expect this to be just the very beginning of a run up through to April of next year.”

“Frankly, I am surprised by how long this move-up took, but generally, the longer the consolidation, the greater the coming action,” Silberberg said.

But, Vicioso notes, it’s not just the potential for spot bitcoin ETFs as “institutions are now talking about things like tokenization and how do they deploy or employ, say, a tokenized strategy into their business.”

“So that is driving more interest in bitcoin and ether as…a backbone for tokenization is blockchain technology. We’re seeing many more say institutions talking about how to implement the technology and I think that that’s also helping to drive value in the individual coins led by bitcoin.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid