In an interview with CNBC, EY's global blockchain leader, Paul Brody, has emphasized the mounting interest in Bitcoin from retail and institutional investors. This surge in demand is expected to escalate further pending the approval of a Bitcoin ETF by the SEC. Brody noted that family offices are already actively participating in the market, while institutional investors are poised to invest trillions into Bitcoin once an ETF receives regulatory clearance.
Brody addressed the unique volatility of Bitcoin prices, drawing parallels with gold and underscoring its relative inelasticity compared to other inflation and hedge-related activities. He also predicted a decrease in Bitcoin issuance as prices continue to climb.
While traditional fiat currencies will still hold sway, Brody foresees Central Bank Digital Currencies (CBDC) and payment stablecoins emerging as potential alternatives. He also expects geopolitical events and upcoming elections to drive an increase in Bitcoin adoption. Highlighting a positive trend in digital asset investment products, Brody pointed out the consistent inflows of $66 million over four successive weeks.
The US SEC's crypto regulatory process is currently under intense global scrutiny as it has not yet approved any spot Bitcoin ETFs. Firms like Grayscale Investments, ARK Investment, BlackRock (NYSE:BLK), and Fidelity have submitted applications for various Bitcoin ETF products to the SEC, awaiting responses. Grayscale recently filed an S-3 form with the SEC to list its Grayscale Bitcoin Trust on NYSE Arca after winning a lawsuit for a spot Bitcoin ETF review.
Eric Balchunas, a senior ETF analyst at Bloomberg, sees ARK Invest and 21Shares' recent amendment to the spot Bitcoin ETF in mid-October 2023 as a positive sign of progress and potential approvals. Meanwhile, Big Questions magazine is investigating NSA's involvement in Bitcoin's creation.
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