Despite the persistence of a few detractors, the adoption of the cryptocurrency sector is now an undeniable fact of life. The successful launch of the Bitcoin and Ethereum cash ETFs is striking proof of this, winning massive support from investors, including those who were previously reluctant to take the plunge into this "digital crypto-economy". At least, that's what a recent study by US law firm Barnes & Thornburg seems to indicate.
The crypto market gains in attractiveness
The SEC's approval of $BTC spot ETFs has paved the way for a significant change of dynamic in Americans' investment logic. This official validation now makes the cryptocurrency sector more feasible and accessible.
Banks such as Standard Chartered are now offering these options to their clients, backed by financial heavyweights such as BlackRock, who are determined to seize this opportunity.
In short, the adoption of crypto-currencies seems to be accelerating in the USA, driven by the resounding success of the first crypto ETFs and the gradual entry of the major traditional players in the financial sector.
Against this backdrop, the law firm Barnes & Thornburg has just carried out another in-depth survey. The survey covered 138 limited partners in venture capital firms, hedge funds and investment banks. And the results are clear-cut!
Cryptocurrency investments on the rise
The survey conducted by Barnes & Thornburg reveals that 84% of participants believe that private investment in cryptocurrencies is set to increase over the next 12 months. What's more, 59% of those surveyed say they are more likely to invest in crypto funds than they were a year ago.
The approval of Bitcoin and Ethereum spot ETFs by the authorities has opened up new prospects, which could go as far as encouraging "investments in private crypto funds and other unregulated products", if the market makes them sufficiently attractive. Some analysts believe that the time is right to seize these opportunities.
In summary, the survey data point to a strong upward trend in investments, both in regulated crypto products and in less regulated vehicles, boosted by the official validation of $BTC and $ETH ETFs by the US authorities.
"This is a notable change from last year, when most respondents said that the current state of the cryptocurrency market had significantly affected their motivation in a negative way." Barnes & Thornburg (Barnes & Thornburg’s
2024 Investment Funds Outlook Report)
For the 26% of investors who are reluctant to invest in crypto-currencies, the main reasons cited are that they are too volatile (46%), that fraud is rife (43%) and that exchange platforms could collapse (43%). These are the investors who will wait for Bitcoin to become as stable as a stock market share before jumping in.
The cryptocurrency market is currently at a decisive turning point. One of the paths it is clearly taking is that of integration with traditional finance. Giants such as BlackRock have joined forces with Nasdaq to try and integrate options into their Ethereum spot ETFs. The race is on, and the major players seem highly motivated to seize these opportunities.
In short, despite the persistent reluctance of some investors, the crypto market is increasingly moving towards adoption by traditional financial players, eager not to miss the boat on this new, fast-growing digital economy.
