Paul Brody, the blockchain leader at EY, reveals that institutional investors are showing substantial interest in Bitcoin. However, their full-scale participation hinges on the approval of a Bitcoin exchange-traded fund (ETF).
Paul Brody, the global blockchain leader at Ernst & Young, stated that cryptocurrencies, particularly Bitcoin, are in high demand among both retail and institutional investors. He mentioned that family offices have started investing in cryptocurrencies, but institutional investors are holding off, waiting for the approval of a Bitcoin exchange-traded fund (ETF) or other regulated investment options before entering the market.
Institutional Investors Await Bitcoin ETF Approval
Paul Brody, Ernst & Young’s global blockchain leader, revealed strong demand for cryptocurrencies, particularly Bitcoin, from both retail and institutional investors. While family offices have shown interest in investing, institutional funds are holding off, anticipating the approval of a Bitcoin ETF by the SEC.
Brody discussed Bitcoin’s unique characteristics, emphasizing that its issuance decreases over time, unlike traditional assets. He noted that Bitcoin is primarily viewed as an asset rather than a payment tool, while Ethereum attracts interest as a platform for business transactions and DeFi services.
Brody also expressed his belief that fiat currencies will remain prominent, with the potential emergence of central bank digital currencies (CBDCs) and payment stablecoins. He anticipates increased crypto adoption due to geopolitical events and upcoming elections.
Institutional Investments Seen in Crypto Funds Across Regions
Over the last four weeks, digital asset investment products have seen continuous inflows, amassing around $66 million. Institutional investors have shown considerable interest in Bitcoin, XRP, and Solana during this period.
This surge in interest comes in the wake of the potential approval of a spot Bitcoin ETF by the U.S. SEC, which has boosted optimism in the Bitcoin market. This positive sentiment has been further fueled by the Federal Reserve’s accommodative stance and Ripple’s ongoing successes in its legal battle with the SEC.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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