The potential introduction of a Bitcoin spot ETF (exchange-traded fund) in the United States has perhaps been the talk of the decade in the cryptocurrency space. While more than a dozen applications await the approval of the US Securities and Exchange Commission, there has been widespread commentary on the potential impact of a spot exchange-traded fund on Bitcoin and the broader crypto market.
Cory Klippsten, CEO of Swan Bitcoin, is amongst the latest people to weigh in on how a Bitcoin Spot ETF will affect the crypto landscape, especially the BTC market.
Bitcoin Spot ETF Will Transform Market Entry Point: Cory Klippsten In an interview with Bloomberg on Friday, December 1, Cory Klippsten dropped his two cents on the approval of Bitcoin spot ETFs and how it changes the game for the premier cryptocurrency. The crypto CEO said he expects the numerous ETF applications to receive the SEC’s approval in early January.
Klippsten believes that an exchange-traded fund changes the story for Bitcoin, especially in terms of gateway or entry for new investors. The Swan Bitcoin executive claims that the entry point for people looking to venture into Bitcoin is somewhat tainted.
Klippsten said in a statement:
In the past six years from 2017 through 2023, the top of the funnel for people looking to get into Bitcoin has been extremely noisy, polluted by all of the crypto marketing schemes funded by $50 billion of venture capital, trying to essentially market and dump crypto tokens.
The crypto CEO believes that a Bitcoin spot ETF would help replace these noisy marketing schemes with programs from the “largest, most trusted financial institutions on the globe.”
Furthermore, Klippsten clarified that the exchange-traded fund is a decent investment product that will function similarly to an IOU. He also differentiated a Bitcoin spot ETF from its futures-based alternative, calling it “paper Bitcoin” since the product is backed by the actual coin.
The CEO added:
I think it’s a great top-of-the-funnel for people to get into Bitcoin, and then if they want to go a little deeper and explore it and hold more, what we’ve seen historically is that as people buy more and learn more, they take self-custody. And so they’re going to graduate from that ETF product into holding real Bitcoin.
In essence, the CEO believes that Bitcoin spot ETFs will offer a safe gateway for new investors, potentially increasing the genuine adoption of the premier cryptocurrency.
Bitcoin Price As of this writing, the BTC price stands at $39,516, reflecting a 2% price increase in the past 24 hours. With a market capitalization of $772 billion, Bitcoin maintains its position as the largest cryptocurrency in the sector.
Bitcoin price continues on upward momentum on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image from Shutterstock, chart from TradingView
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Opeyemi Sule Opeyemi Sule is a passionate crypto enthusiast, a proficient content writer, and a journalist at Bitcoinist. Opeyemi creates unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies. Opeyemi enjoys reading poetry, chatting about politics, and listening to music, in addition to his strong interest in cryptocurrency.