- US SEC approved 11 ETF products based on Bitcoin, for both crypto insider companies and mainstream finance funds.
- The news of a launch boosted BTC above $46,000.
- Web3 space continues its innovation independently, but could have positive gains from increased awareness of blockchain technology.
One of the most awaited news in cryptocurrency space was the launch of an ETF, a mainstream investment tool to bet on Bitcoin’s price action. So far, only limited opportunities existed, in the form of BTC or Ethereum-based funds on NASDAQ Nordic.
Finally, a US-targeted Bitcoin ETF was approved late on Wednesday. The US Securities and Exchange Commission approved a total of 11 products. Among them was the long-awaited Van Eck ETF, as well as a product by Black Rock. Grayscale Capital will also graduate from BTC-based shares into a full exchange-traded ETF.
The products are hours away from their actual launch. Predictions for inflows range between $55B and $100B in the first year of the products.
How the Bitcoin ETF Will Affect Web3
Having a crypto-based product approved by the US SEC is another milestone for the crypto industry. The immediate effect of the ETF was to spark a rally for BTC, where prices recovered to above $46,000.
Crypto investment has never been truly restricted, as anyone can launch a wallet and acquire coins and tokens. The ETF is also going to appeal to more traditional investors, who may not be interested in direct crypto ownership.
However, the effects of the ETF will be second-hand, improving the general optimism and liquidity. With ETH also recovering above $2,400, DeFi will get a boost for collaterals and invite new liquidity.
Web3 Innovation Still Faster
The Bitcoin ETF arrives roughly 15 years after the first mined BTC block. During that time, crypto innovation moved through several stages.
Web3 has proven to be one of the best use cases for some types of blockchains. The Web3 space also has a different liquidity pool and a separate economy hinging on users, gamers, and voluntary liquidity providers.
While the BTC ETF may draw in more fiat from pension funds or hedge funds, Web3 aims to grow organically and build a new generation of products.
Unlike the ETF, Web3 is still about self-custody and self-ownership. NFTs are evolving to move on from collections and into a tool for digital certification of real items.