Cryptocurrency investing is quickly entering the mainstream financial consciousness, according to Summer Mersinger, pro-crypto commissioner of the Commodity Futures Trading Commission (CFTC).
Making his thoughts heard during a special appearance on CoinDeskTV, Mersinger noted that crypto trading is no longer a fad.
According to her, several government regulators viewed cryptocurrencies as a hot topic that would disappear over time. However, the nascent industry has shown its mettle and is now relying on traditional finance.
Mersinger said this gradual interaction between traditional financial institutions and the blockchain-driven economy proves that these digital assets are here to stay, and that even more traditional investors would want exposure to them.
Leading crypto asset Bitcoin has once again woken up the crypto market with its meteoric rally following reports of a possible spot Bitcoin exchange-traded fund (ETF).
Over the past 24 hours, Bitcoin is up over 12%, well past $35,000, with even more bullish momentum expected.
Bitcoin’s strong rally was orchestrated by reports of BlackRock’s proposed spot Bitcoin ETF, iShares Bitcoin Trust, making an appearance on a list created by the Depository Trust and Clearing Corporation (DTCC).
DTCC is responsible for clearing, settlement, custody and post-trade information services. This rapid turn of events has led many ETF analysts to state that the opportunities for a spot Bitcoin ETF are significantly higher than ever.
One such analyst is Eric Balchunas, senior ETF expert at Bloomberg, who noted on X (formerly Twitter) that BlackRock’s addition to the DTCC list is a clear signal that the asset management giant is leading the race to gain regulatory approval in the coming months.
Commenting on the possibility of a Bitcoin ETF serenading the market, Mersinger said that Bitcoin-based ETFs are already being offered.
“I think there’s a lot of interest in these products. And you know, the market is ready for these products to be available,” she added.
Pent-up demand for Bitcoin Spot ETFs could trigger a BTC price rally
Mersinger is not alone in recognizing the growing relationship between the crypto space and the traditional landscape.
In a special appearance on CNBC’s StreetSigns, Ernst & Young (EY) principal Paul Brody called attention to institutional interest in crypto.
According to Brody, there is currently pent-up demand for the crypto asset due to the refusal of the United States Securities and Exchange Commission (SEC) to approve one.
Make a case For his post, the EY executive said there is currently $200 trillion in assets under management (AUM) from the “big four” asset management firms like BlackRock and VanEck.
These asset managers are impatiently waiting for the SEC to give an affirmative sign to offer their services.
Providing context for why Bitcoin would be the biggest beneficiary of regulatory approval, Brody said several investors view the first decentralized currency as an asset and not a payment tool.
This is very different from Ethereum’s ETH token, which is seen as an IT tool enabling permissionless transfer of value.