BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Spot Bitcoin ETFs to Have Limited Impact on the Investment Scene, States Moody Analysts

by BlockNews.com Team
January 11, 2024
in Crypto
A A
Spot Bitcoin ETFs to Have Limited Impact on the Investment Scene, States Moody Analysts
1
SHARES
Share on TwitterShare on Reddit
  • The approval of Bitcoin ETFs in the US is a major milestone for crypto, but the impact on broader portfolio allocations may be limited initially according to Moody’s analysts.
  • While the ETF approvals are a “watershed moment”, Bitcoin remains a very small part of most investment portfolios currently.
  • Over the medium to long term, the ETF development is expected to gradually increase institutional investment in Bitcoin as a new asset class and have a positive effect on Bitcoin price discovery and stability.

The long-awaited approval of Bitcoin exchange-traded funds (ETFs) in the US is a major milestone for the crypto industry. However, the impact on broader portfolio allocations may be limited, according to analysts from Moody’s Investor Services.

Institutional Interest in Bitcoin Set to Increase

Moody’s analysts do not downplay the significance of the first Bitcoin ETFs being approved after 10 years. They describe it as a “watershed moment” that will likely attract more institutional investors to the crypto market. However, Bitcoin remains a very small part of most investment portfolios. The ETF approvals alone won’t necessarily entice investors to increase their Bitcoin allocation.

Recent Bitcoin Price Trends and Drivers

In the last year, Bitcoin’s price has more than doubled after the dramatic crypto market downturn in 2022. Moody’s notes that whether this positive trend continues depends on factors like monetary policy and potential new industry scandals. The analysts cite the FTX collapse as an example of crypto failures that have impacted Bitcoin’s price.

Longer-Term Outlook More Positive for Bitcoin

According to Moody’s, the ETF development will likely have a positive effect on Bitcoin price discovery and stability over the medium to long term. It is expected to gradually increase institutional investment in Bitcoin as a new asset class.

JUST IN: Moody analysts state the Spot #Bitcoin ETF does not constitute a reason to increase $BTC portfolio allocations

— BlockNews.com (@blocknewsdotcom) January 11, 2024

New Investor Protections with Bitcoin ETFs

Moody’s points out that buying Bitcoin through regulated ETFs offered by traditional financial players reduces risks compared to dealing with less regulated crypto intermediaries. However, they caution that Bitcoin itself remains highly volatile.

Beyond Bitcoin: The Rise of Tokenization

In addition to Bitcoin ETFs, Moody’s is tracking the growing trend of tokenizing real-world assets like bonds or commodities on blockchains. They see this as another area where traditional finance is embracing crypto technology. The approval of Bitcoin ETFs validates crypto solutions and is also positive for tokenization.

Conclusion

While the first Bitcoin ETFs are a milestone, their impact may be limited initially unless institutional investors significantly increase their crypto asset allocations. However, Moody’s analysts see the approvals as validation of crypto’s steady integration with mainstream finance over the long run.

Tags: BitcoinBitcoin ETFcryptoETFFTX
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

Dogwifhat’s Comeback: Will $1.00 Hold as WIF Targets Higher?
Crypto

Dogwifhat’s Comeback: Will $1.00 Hold as WIF Targets Higher?

May 17, 2025
BONK and DeFi Dev Corp Partner for Solana Validator, Despite Price Dip
Crypto

BONK and DeFi Dev Corp Partner for Solana Validator, Despite Price Dip

May 17, 2025
Conflicting Signals for AVAX: NFT Mania vs. Weak Demand
Crypto

Conflicting Signals for AVAX: NFT Mania vs. Weak Demand

May 17, 2025
HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip
Crypto

HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip

May 17, 2025
USD1 Goes Cross-Chain: Chainlink Partnership Unlocks Massive Growth Potential
Chainlink

USD1 Goes Cross-Chain: Chainlink Partnership Unlocks Massive Growth Potential

May 17, 2025
SUI Unleashed: Institutional Money and DeFi Volume Propel Its Rise
Crypto

SUI Unleashed: Institutional Money and DeFi Volume Propel Its Rise

May 17, 2025
Load More

Related News

Dogwifhat’s Comeback: Will $1.00 Hold as WIF Targets Higher?

Dogwifhat’s Comeback: Will $1.00 Hold as WIF Targets Higher?

May 17, 2025
BONK and DeFi Dev Corp Partner for Solana Validator, Despite Price Dip

BONK and DeFi Dev Corp Partner for Solana Validator, Despite Price Dip

May 17, 2025
Conflicting Signals for AVAX: NFT Mania vs. Weak Demand

Conflicting Signals for AVAX: NFT Mania vs. Weak Demand

May 17, 2025
HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip

HYPE’s Billion-Dollar Milestone: TVL Surge and Bullish Channel Defy Spot Volume Dip

May 17, 2025
USD1 Goes Cross-Chain: Chainlink Partnership Unlocks Massive Growth Potential

USD1 Goes Cross-Chain: Chainlink Partnership Unlocks Massive Growth Potential

May 17, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.