Bitcoin ETFs start a new phase of market growth for crypto assets.

An ETF approval has eluded Bitcoin for years on account of the SECs concerns around price reliability and transparency. However, in October 2021 we finally saw the SEC tacitly approve a futures-based ETF for Bitcoin that started trading to considerable volumes in the first week.

What does this mean for the space though? Firstly, it should be noted that the approved ETF is backed by futures and not spot BTC, which though positive, is not what crypto enthusiasts have really been wanting.

However, given how Bitcoin futures have already been offered by CME for a while now, it made sense for the SEC to let a futures-backed ETF go to market. Will we see a spot ETF soon? Perhaps, but unlikely this year.

Secondly, the BTC ETF is likely to pave the way for a similar ETF approval for ETH, which is the second-largest digital currency.

With crypto ETFs launching we can see more participation from the traditional finance sector, including retail and institutional traders seeking less complicated ways to gain crypto exposure compared to GBTC and actual physical custody of assets.

Now that Bitcoin has set a new all-time high, we can expect interest in the market to peak in the coming months and it will be interesting to see the dynamics of these newly approved ETFs and how they trade during this bullish phase.