The Securities and Exchange Commission (SEC) has given the green light to the first spot Bitcoin exchange-traded funds (ETFs) in the United States. This move is seen by Web3 professionals as a potential boost to the nonfungible tokens (NFTs) sub-crypto ecosystem, which has been experiencing a downturn.
Bill Qian, chairman of Cypher Capital, a crypto investment firm, suggests that ‘alternative assets’ such as NFTs could indirectly benefit from the approval of the spot Bitcoin ETFs. Qian is of the opinion that the ETFs’ approval will be instrumental in mainstream finance’s acceptance of Bitcoin (BTC), and this could have a ripple effect on NFTs. He stated, “The growing understanding and acceptance of Bitcoin will likely spill over, increasing investor curiosity and appetite for NFTs.” Qian further added that the expansion in knowledge and comfort with digital assets could lead to a broader embrace of NFTs as a viable investment alongside BTC.
Oscar Franklin Tan, the CFO of Atlas Development and a key contributor to the NFT platform Enjin, also believes that the spot Bitcoin ETF approvals will give NFTs a boost. He pointed out that Bitcoin has NFTs, referring to the Ordinals protocol, which has seen over $800 million in sales volume in the past 30 days. Tan also mentioned that the ETF approvals are a crucial validation, indicating that the largest digital asset is now SEC-approved for retail. He suggested that Ethereum ETFs could be next, which would bring renewed interest in Ethereum-based NFTs.
Sergey Sheleg, the chief product officer of the Web3 social platform Nicegram, sees the integration of traditional financial structures like ETFs with crypto as a positive signal for the NFT market. He believes this could improve confidence and increase institutional involvement in the NFT space. Sheleg also noted that regulations around digital assets are evolving rapidly, which will aid the cause of NFTs in areas such as ticketing, fractional art ownership, and identity management.
Dirk Lueth, the co-founder of NFT gaming platform Upland, said that the ETFs will reduce the perceived risk and complexity of entering the crypto market, thereby encouraging more purchasing activities in the NFT space. Lueth also expects growth with increased market liquidity, the expected reduction of price volatility, better infrastructure, and more regulatory clarity. He added that the approvals will raise awareness and confirm that the crypto industry is here to stay and has a future in the U.S.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇳 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Bill Qian, Sergey Sheleg, Oscar Franklin Tan, Dirk Lueth |
| Companies | Securities and Exchange Commission, Cypher Capital, Coinbase, Enjin, BlackRock, Fidelity, Atlas Development, Nicegram, Upland |
| Currencies | Ethereum, cryptopunks, Bitcoin, ApeCoin |
| Securities | None |
