Bitcoin ETF gets US SEC stamp of approval; Indian crypto industry reacts

The US Securities and Exchanges Commission (SEC) has given its approval for exchange-traded funds (ETFs) directly investing in bitcoin, a move that comes after nearly a decade of denials.

The development is likely to bring in more institutional investors into the crypto space, and several Indian crypto players have reacted with great positivity to the news.

"These companies will be marketing teams for bitcoin, and a lot of institutional money will pour into the space. April is the month of halving and the supply shock plus the excessive money supply is the perfect storm for bitcoin price," said Rajagopal Menon, Vice President of WazirX, in a statement.

Menon added that this excitement will then move onto speculation around Ethereum ETF.

Ashish Singhal, Co-founder and Group CEO of PeepalCo, echoed similar sentiments suggesting that there would be a greater influx of retail investors into the space.

"Investors can seamlessly benefit from bitcoin price movements without the complexities of digital wallets or drastic investment strategy overhauls," he said in a post on X (formerly Twitter), highlighting that institutional investors could also move into DeFi.

"The approval of spot bitcoin ETFs will not only enhance accessibility for investors but also contribute to the establishment of a more robust and regulated crypto market, aligning with our vision for a thriving Web3 economy," said Rahul Pagidipati, CEO of Zebpay.

Going into the new year, more institutional investors will likely see interest in India as a result of this approval, several exchanges told YourStory earlier this year.

Overall it is likely that the Bitcoin ETF will improve the ongoing bear market situation in crypto markets.

In December last year, Bitcoin crossed the $41,000 mark in Asia for the first time after the collapse of Terra-Luna in 2022. Traders are putting their money on the top side of bitcoin, expecting it to touch as much as $45,000 by March next year.