In a significant milestone for the crypto industry, the SEC has approved 11 spot bitcoin ETFs, allowing them to trade legally in the US

However, the approval has not been without controversy, as a fake announcement was posted to the SEC's X account the day before the official announcement, leading to a dramatic start. As the regulators are now here, it's essential to understand the implications for crypto investments and what lies ahead in 2024.

Key-Points

• Maturation of the industry: The crypto winter of 2022 highlighted the need for maturity in the industry, marked by increased circumspect projects and a growing demand for legal and compliance services.

• Regulatory backlash: The growth of the crypto industry has led to increased regulatory scrutiny, with many projects taking a more cautious approach to compliance.

• Wave of institutional investments: The approval of ETFs is expected to attract $36B of other crypto investments, signaling a shift towards more institutional engagement.

• Regulator's expectations: The SEC's JPMorgan forecast expects that $36B of other crypto investments will move to the ETFs, highlighting the regulators' expectations for the industry's growth.

• Access restrictions: Some firms are refusing access to invest in these products to their clients, underscoring the importance of regulatory compliance.

Conclusion

The approval of ETFs has marked a significant turning point for the crypto industry, with regulators now actively involved in shaping its growth.

As the industry matures and institutional investments increase, it's crucial for projects to prioritize compliance and regulatory adherence.

CBOE Digital's Katherine Kirkpatrick Bos highlights the importance of maturation and regulatory backlash in the crypto industry, emphasizing the need for a more cautious approach to compliance.


References:

Morton, S., & Kirkpatrick Bos, K. (2024, January 18). Crypto for Advisors: The Regulators are Here. Retrieved from https://www.coindesk.com/business/2024/01/18/crypto-for-advisors-the-regulators-are-here/

Katherine Kirkpatrick Bos - Chief Legal Officer - CBOE Digital. (n.d.). Retrieved January 20, 2024, from https://www.linkedin.com/in/katherine-kirkpatrick

Canada Proposes New Crypto Rules for Public Investment Funds. (2024, January 19). Retrieved January 20, 2024, from https://finance.yahoo.com/news/canada-proposes-crypto-rules-public-042931787.html

Morton, S. (2024, January 18). Sarah Morton on LinkedIn: Crypto for Advisors: The Regulators are Here. Retrieved from https://www.linkedin.com/posts/sarahmortonvan_crypto-for-advisors-the-regulators-are-here-activity-7153801806995705856-eFF5/

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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