Bitcoin ETF: India’s Big Chance Due to Strong Crypto Demand, Says Exchange VP

The U.S. SEC is close to approving the first Bitcoin ETF, a move that WazirX VP believes will usher in a wave of institutional funds.
By Shraddha Sharma
Bitcoin-ETF

The U.S. Securities and Exchange Commission (SEC) is on the verge of approving the first-ever Bitcoin Exchange Traded Fund (ETF). Bloomberg’s senior analyst Eric Balchunas confirmed that the trading of the spot ETFs will likely begin Thursday after a final go-ahead today.  

CoinGape spoke to Rajagopal Menon, VP at Indian crypto exchange WazirX about the potential launch.

“ETF application approval by the SEC will mark the first of its kind regulator-backed crypto offering and facilitate a steady flow of institutional funds in the crypto industry,” said Menon.

Advertisement
Advertisement

Market in good spirits

The approvals will mark a monumental shift in the global financial ecosystem after a decade-long wait. And so, the market remains in good spirits despite minor losses after bogus Bitcoin ETF approval news was debunked.

Menon added, “This has definitely lifted the spirits of the market, investors as well as analysts who have predicted an overall optimistic outlook for Bitcoin as well as the industry.”

This regulatory endorsement is expected to open the gate for more institutional funds into the crypto market. “[ETF approval] It is being touted as one of the most significant developments of 2024 alongside the Bitcoin halving since it will boost market liquidity by large margins,” the VP explained.

Advertisement
Advertisement

What will change for crypto?

2024 is shaping up to be a pivotal year for the crypto world, with the Bitcoin halving event on the horizon for April. Menon explained that this development, along with the approval, comes at a time when the market has grappled with liquidity challenges and subdued trading activity over the past year.

“We have seen some long position selling in the last couple of weeks due to a price surge for key tokens. While this did create pressure on the market, it was a normal corrective behavior of a maturing ecosystem,” Menon said.

Advertisement
Advertisement

Market reactions and predictions

Initial market reactions to the ETF news are bullish, forecasting an uptick in Bitcoin prices, the exchange VP explained. However, some analysts now speculate a potential dip in prices, attributing it to tepid initial demand for the ETFs.

Menon said, “Even if that’s the case, it is still an optimistic move for the market because of the high level of exposure that traditional funds will have to Bitcoin.”

India in focus after Bitcoin ETF launch

US markets have remained an epicenter for emerging technology before Asia took over. And with the crypto launches, all eyes would be on how the Asian markets, like India, push demand for these ETPs.

Menon said, “For building wealth, diversification of portfolio, this move will be a golden opportunity, especially in countries like India where the appetite for crypto investment is high.”

Preparing for the SEC verdict

While all eyes are on 11 ETF launches on Thursday, what if the verdict is not favorable for all the applicants?

Menon explained, “And in the off chance that the verdict is not in favor of Exchange Traded Funds for Bitcoin, the market still has the Bitcoin halving to look forward to and apply again for another round of ETF approval, maybe with less promotion on its potential impact on the market which definitely affected the price movement of the token in December 2023.”

Meanwhile, the SEC’s impending decision today on the Bitcoin ETF stands as a watershed moment for the industry.

Advertisement
Shraddha Sharma
Shraddha's professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.