Hashdex Indicates Potential Launch of Crypto ETFs in 2024
On December 4th, the crypto asset management firm Hashdex unveiled its 2024 Crypto Investment Outlook report, forecasting the availability of spot Bitcoin and Ether exchange-traded funds (ETFs) for U.S. investors by Q2 2024.
In their analysis, Hashdex pointed to a series of indicators in 2023 signaling an imminent regulatory approval for crypto ETFs, notably referencing the high-profile application filing by BlackRock in June. With over a dozen asset managers awaiting approval for spot bitcoin ETF filings from the SEC, Hashdex emphasized the shift in narrative from debating the possibility ('if') to anticipating the timing ('when') of a spot bitcoin ETF in the U.S.
Dramane Meite, Head of Product for the U.S. and Europe at Hashdex, highlighted this transformation, stating, "The exact timing of a spot bitcoin ETF in the U.S. remains unclear, but in 2023 the narrative around this product switched from a question of ‘if’ to a matter of ‘when’."
Industry experts have suggested that the approval of spot crypto ETFs could potentially unlock trillions of dollars in new investments. Hashdex projected that spot ETFs could tap into a market exceeding $50 trillion in assets under management (AUM), encompassing U.S. retail, wealth management, financial advisors, direct retail, and private banks, surpassing the combined AUM of crypto ETP markets in Europe, Canada, and Brazil.
Additionally, beyond facilitating expanded market access, Hashdex anticipated that ETF approvals would spur product innovation. They envisaged the emergence of specialized offerings tailored to different risk appetites, following the introduction of basic single-asset funds.
Hashdex also highlighted the upcoming Bitcoin halving scheduled for April, which reduces the issuance rate of new Bitcoin. This event is seen as a potential catalyst fueling a bullish market trend in 2024, contributing to the firm's optimistic outlook on the growth trajectory of cryptocurrencies, despite the challenges experienced in 2022.
