Are we ready for Bitcoin and Ethereum ETF's

There are notable parallels indicating that crypto spot ETFs, reminiscent of the SPY in the 90s, exhibit a clear Product-Market Fit (PMF).

Firstly, both retail and institutional investors are actively seeking a reliable asset issuer/counterparty, and BlackRock stands out as the epitome of trustworthiness. In a post-FTX world where counterparty trust has been eroded, BlackRock, as the world's largest asset manager overseeing $9 trillion in assets, emerges as a beacon of credibility, managing nearly half the size of the US GDP.

Secondly, the entire crypto industry is closely monitoring the Federal Reserve's actions, as a projected rate cut in mid-2024 could potentially alleviate pressure on cryptocurrencies and other alternative/risk assets.

Thirdly, regulatory clarity is emerging worldwide. In the EU, ESMA is expected to release MICA asset due diligence/monitoring guidelines by March 2024, and the UK's crypto financial promotion rules became effective in October 2023. In the US, California has approved crypto legislation effective from 2025, New York's crypto listing guidelines are now in effect, and Asia is actively shaping regulations, with developments in Korea, Hong Kong, and China signaling a softer stance on its crypto ban, and Singapore and 47 other jurisdictions collaborating on the international "Crypto-Asset Reporting Framework" set for release in 2027.

The confluence of regulatory clarity and regulated products is poised to unlock the long-restrained institutional demand that has lingered for almost a decade. Simultaneously, regulated, transparent, and trusted crypto investment products are enhancing accessibility, coinciding with the advent of the AI era, analogous to the dot-com era that complemented the rise of ETFs. This convergence of market structure and catalysts positions ETFs as the fastest-growing asset class globally, anticipated to surpass mutual funds in total Assets Under Management (AUM). In the first decade of SPY's existence, it grew from $31.6 billion in AUM by 2003 to nearly $500 billion by October 31, 2023.

If BlackRock's spot BTC ETF receives approval, it is evident that a byproduct will be a significant influx of new investor interest. The question arises: have we reached PMF this time around? The optimism is palpable, as crypto sheds its previous stigma and transforms from being perceived as criminal, wasteful, and useless to becoming recognized as safe, credible, and effective."