NEW DELHI: Buoyed by the launch of Bitcoin futures Exchange-Traded Fund (ETF) in the US a day ago, prices of the cryptocurrency surged by over 7% to breach $66,000-mark on Wednesday.
Cryptocurrency players in India see the development as a big validation for crypto-currency, and they hope that other countries may also follow on the footstep of the US. In India, cryptocurrency exchanges see this as a possible trigger for softening of the government and regulator’s stance towards digital currencies.
Nischal Shetty, CEO of cryptocurrency exchange WazirX, says that the move would increase investor confidence in cryptocurrencies as well as make regulators across the world have a relook at their stance against it.
Indian central bank the Reserve Bank of India (RBI) has maintained that private cryptocurrencies would be detrimental to the country’s economy. Recently, RSS chief Mohan Bhagwat had also expressed his reservation against cryptocurrencies.
Experts hope the launch of Bitcoin Futures ETF would help change the narrative in cryptocurrencies’ favour. “The launch of bitcoin futures ETF shows that there is clear mainstreaming visibility from both the investor and regulator landscape. This is an important step for crypto to become a digital asset class of the future recognised by all stakeholders,” says CoinDCX Research Team.
The launch of ETF may also bring in new set of investors, both individual and institutional. “Because of regulatory uncertainty, the corporate and institutional investors largely stayed away from crypto-currency. With the ETF, more traditional investors would come in the cryptocurrency market,” says Shetty of WazirX. The first Bitcoin Futures ETF – ProShare Bitcoin Strategy ETF – was launched on Tuesday. The ETF would offer exposure to Bitcoin futures contract. The ETF jumped 4.8% to close at $41.94 on Tuesday.