LANGUAGE
After the U.S. Treasury approved Bitcoin spot-based ETFs we have continued to ask both ourselves and our readers: What does that mean? To what extent can we say that it has been a success? And what do people within the crypto industry think about what's going on; in Norway, Sweden, Denmark. In this article we have collected reactions from key Danish actors.
The questions we've asked them have been:
Below you can read comments from Jakob Mikkel Hansen (Nordic Blockchain Association), Karina Rothoff Brix (Firi Denmark), Morten Rongaard (ex Reality+, planning new company) and Esben Neupart (GL21 Capital)
Some of these comments have been previously published in Unleash Insight Newsletter No.3, which came out earlier in this week. You can subscribe to Unleash Insight which is a combined concept with newsletter and an upcoming podcast.
What's your comment after the US Financial Supervisory Authority (SEC) on Wednesday approved the sale of Bitcoin spot-based ETFs
Jakob Mikkel Hansen, Head of the Nordic Blackchain Association has answered question 1: We are very pleased that more structured products are now available and that legislation is in place. This will mean more long-term capital to the industry, which is necessary to build long-term solutions and realize the potential of blockchain. We hope that the Nordic legislature understands the magnificent milestone set by the SEC and encourage them to look at similar opportunities in our region. The NBA and our network of experts are here to help.
Karina Rothoff Brix (Firi Denmark) answers the question of the importance of the ETF decision like this: “I think there are some clear benefits for the crypto industry in the fact that the SEC has now finally approved 11 spot ETFs. The first is that it is a recognition that bitcoin and therefore other cryptos have real value and are not just a bobble as many have claimed over the years. This is a clear signal that crypto is seen as a new asset class that will shape our future.”
“The other consideration I have is that with a spot ETF it has now made it much easier to get a lot more capital to invest in bitcoin because they buy into a regulatory framework and regulation that they already know. It is also easier for financial advisors and asset managers, for example, to allocate a portion of their clients' portfolios to investing in crypto. There is therefore access to a lot of money and this over many years, which can also affect both the price in the positive direction and also the volatility which should be expected to decrease over time.”
Rongaard thus answers our first question, about the significance of the SEC's decision
: “The SEC's decision to approve the sale of Bitcoin Spot-based ETFs represents a monumental step in the interaction between cryptocurrency and traditional finance. This approval not only legitimizes Bitcoin in the eyes of many skeptical investors, but also paves the way for broader acceptance and integration of cryptocurrencies into conventional investment portfolios.”
“It is a clear indication of the growing recognition of digital assets as a significant part of the financial landscape. This move could act as a catalyst for further innovation and development in the crypto space, and offer investors regulated and potentially less risky avenues to explore the growing world of digital assets. It is a progressive step that bridges the gap between cutting-edge financial technology and established financial markets, potentially leading to more stable and varied investment opportunities for all types of investors.”
Esben Neupart is a partner in GL21 Capital, which is an asset manager of Denmark's first crypto fund.
Here's Neupart's comment on the ETF decision:
“We view positively the U.S. Treasury's (SEC) approval of bitcoin spot ETFs. At GL21 CAPITAL, we consider the event historic, not just for bitcoin, but for the entire crypto industry. It marks an important milestone and lends legitimacy to bitcoin as an investment opportunity on par with traditional asset classes.”
“The approval opens the doors to a broader investor base and will create a demand pressure. Many institutional investors who previously did not have a mandate to buy bitcoin outright can now gain exposure without having to hold the asset outright. In addition, through their retirement savings, Americans will also be able to access the bitcoin spot ETFs. In addition, we believe that many investments in futures-based ETFs, mining stocks or the like will be channeled into the spot ETFs.”
“Our expectations are not that the price of bitcoin will skyrocket immediately after the approval, but our suggestion is that in 5-10 years we will look back on this event as one of the catalysts that caused bitcoin to rise significantly in market value. With this approval that will bring demand pressure in the long term and with the upcoming bitcoin halving that will halve the current supply, we believe 2024 will be a very good year for the crypto industry.”
How do you view the relationship between classical/traditional finance and crypto/blockchain in the years ahead?
Legal clarity and structured products as well as access for large capital deposits are the first step towards normalizing and demystifying blockchain/decentralized ledger technology/systems as an asset class. We therefore believe that it will become much more compliant over time and investments in the space will be considered a classic and conventional investment in terms of blockchain. We also envisage that these large structured products will mean more capital inflows and trading volumes, which will lead to more stability in pricing, which is also necessary.
“I see a maturation of the relationship between trad-fi and crypto in the future. This is a maturation that is already taking place and has clearly been accelerated by the adoption of MICA. There has been a lot more curiosity and willingness to learn about crypto from Trad-Fi over the past year than we have experienced in the past. And banks are also realizing that they need to gain knowledge about both the crypto industry and the tools available to be able to meet their responsibilities in the future.”
“Looking ahead, the relationship between traditional finance and crypto/blockchain is on track to become increasingly synergistic. The approval of Bitcoin ETFs by the SEC is just the beginning of what promises to be a deeper integration of these two areas. Traditional financial institutions are likely to continue to adopt blockchain technologies for their efficiency, transparency and security benefits. This adoption will not only improve the operation of these institutions, but also open up new investment opportunities and markets.”
“In addition, the regulatory clarity and frameworks that are established, such as MICA regulation in the EU, provide a solid foundation for this integration, reduce uncertainties and foster a favourable environment for innovation. We are facing to witness a significant transformation in the financial sector, with digital assets and blockchain technology complementing and enhancing traditional financial systems, leading to more robust, efficient and inclusive financial markets. This integration is a forward-looking development that will redefine the contours of finance, investment and economic transactions on a global scale.”
“We predict that more interaction between traditional finance and the crypto industry will emerge in the future. Events such as the approval of bitcoin spot ETFs and the introduction of the MICA regulation in Europe are signs that the crypto industry is becoming recognized and accepted. This opens up the door for more traditional finance companies to take the plunge into the crypto industry and explore the many opportunities that exist.”
“We don't believe the crypto industry is replacing traditional finance; instead, we see it as a symbiotic relationship that creates more alternatives for individuals globally and increases financial inclusion. The interaction between the two worlds is likely to contribute to a more diversified and robust global economy, and not least to contribute to a more equitable financial system for the benefit, in particular, of individuals living in non-Western countries.
After the U.S. Treasury approved Bitcoin spot-based ETFs we have continued to ask both ourselves and our readers: What does that mean? To what extent can we say that it has been a success? And what do people within the crypto industry think about what's going on; in Norway, Sweden, Denmark. In this article we have collected reactions from key Danish actors.
The questions we've asked them have been:
Below you can read comments from Jakob Mikkel Hansen (Nordic Blockchain Association), Karina Rothoff Brix (Firi Denmark), Morten Rongaard (ex Reality+, planning new company) and Esben Neupart (GL21 Capital)
Some of these comments have been previously published in Unleash Insight Newsletter No.3, which came out earlier in this week. You can subscribe to Unleash Insight which is a combined concept with newsletter and an upcoming podcast.
What's your comment after the US Financial Supervisory Authority (SEC) on Wednesday approved the sale of Bitcoin spot-based ETFs
Jakob Mikkel Hansen, Head of the Nordic Blackchain Association has answered question 1: We are very pleased that more structured products are now available and that legislation is in place. This will mean more long-term capital to the industry, which is necessary to build long-term solutions and realize the potential of blockchain. We hope that the Nordic legislature understands the magnificent milestone set by the SEC and encourage them to look at similar opportunities in our region. The NBA and our network of experts are here to help.
Karina Rothoff Brix (Firi Denmark) answers the question of the importance of the ETF decision like this: “I think there are some clear benefits for the crypto industry in the fact that the SEC has now finally approved 11 spot ETFs. The first is that it is a recognition that bitcoin and therefore other cryptos have real value and are not just a bobble as many have claimed over the years. This is a clear signal that crypto is seen as a new asset class that will shape our future.”
“The other consideration I have is that with a spot ETF it has now made it much easier to get a lot more capital to invest in bitcoin because they buy into a regulatory framework and regulation that they already know. It is also easier for financial advisors and asset managers, for example, to allocate a portion of their clients' portfolios to investing in crypto. There is therefore access to a lot of money and this over many years, which can also affect both the price in the positive direction and also the volatility which should be expected to decrease over time.”
Rongaard thus answers our first question, about the significance of the SEC's decision
: “The SEC's decision to approve the sale of Bitcoin Spot-based ETFs represents a monumental step in the interaction between cryptocurrency and traditional finance. This approval not only legitimizes Bitcoin in the eyes of many skeptical investors, but also paves the way for broader acceptance and integration of cryptocurrencies into conventional investment portfolios.”
“It is a clear indication of the growing recognition of digital assets as a significant part of the financial landscape. This move could act as a catalyst for further innovation and development in the crypto space, and offer investors regulated and potentially less risky avenues to explore the growing world of digital assets. It is a progressive step that bridges the gap between cutting-edge financial technology and established financial markets, potentially leading to more stable and varied investment opportunities for all types of investors.”
Esben Neupart is a partner in GL21 Capital, which is an asset manager of Denmark's first crypto fund.
Here's Neupart's comment on the ETF decision:
“We view positively the U.S. Treasury's (SEC) approval of bitcoin spot ETFs. At GL21 CAPITAL, we consider the event historic, not just for bitcoin, but for the entire crypto industry. It marks an important milestone and lends legitimacy to bitcoin as an investment opportunity on par with traditional asset classes.”
“The approval opens the doors to a broader investor base and will create a demand pressure. Many institutional investors who previously did not have a mandate to buy bitcoin outright can now gain exposure without having to hold the asset outright. In addition, through their retirement savings, Americans will also be able to access the bitcoin spot ETFs. In addition, we believe that many investments in futures-based ETFs, mining stocks or the like will be channeled into the spot ETFs.”
“Our expectations are not that the price of bitcoin will skyrocket immediately after the approval, but our suggestion is that in 5-10 years we will look back on this event as one of the catalysts that caused bitcoin to rise significantly in market value. With this approval that will bring demand pressure in the long term and with the upcoming bitcoin halving that will halve the current supply, we believe 2024 will be a very good year for the crypto industry.”
How do you view the relationship between classical/traditional finance and crypto/blockchain in the years ahead?
Legal clarity and structured products as well as access for large capital deposits are the first step towards normalizing and demystifying blockchain/decentralized ledger technology/systems as an asset class. We therefore believe that it will become much more compliant over time and investments in the space will be considered a classic and conventional investment in terms of blockchain. We also envisage that these large structured products will mean more capital inflows and trading volumes, which will lead to more stability in pricing, which is also necessary.
“I see a maturation of the relationship between trad-fi and crypto in the future. This is a maturation that is already taking place and has clearly been accelerated by the adoption of MICA. There has been a lot more curiosity and willingness to learn about crypto from Trad-Fi over the past year than we have experienced in the past. And banks are also realizing that they need to gain knowledge about both the crypto industry and the tools available to be able to meet their responsibilities in the future.”
“Looking ahead, the relationship between traditional finance and crypto/blockchain is on track to become increasingly synergistic. The approval of Bitcoin ETFs by the SEC is just the beginning of what promises to be a deeper integration of these two areas. Traditional financial institutions are likely to continue to adopt blockchain technologies for their efficiency, transparency and security benefits. This adoption will not only improve the operation of these institutions, but also open up new investment opportunities and markets.”
“In addition, the regulatory clarity and frameworks that are established, such as MICA regulation in the EU, provide a solid foundation for this integration, reduce uncertainties and foster a favourable environment for innovation. We are facing to witness a significant transformation in the financial sector, with digital assets and blockchain technology complementing and enhancing traditional financial systems, leading to more robust, efficient and inclusive financial markets. This integration is a forward-looking development that will redefine the contours of finance, investment and economic transactions on a global scale.”
“We predict that more interaction between traditional finance and the crypto industry will emerge in the future. Events such as the approval of bitcoin spot ETFs and the introduction of the MICA regulation in Europe are signs that the crypto industry is becoming recognized and accepted. This opens up the door for more traditional finance companies to take the plunge into the crypto industry and explore the many opportunities that exist.”
“We don't believe the crypto industry is replacing traditional finance; instead, we see it as a symbiotic relationship that creates more alternatives for individuals globally and increases financial inclusion. The interaction between the two worlds is likely to contribute to a more diversified and robust global economy, and not least to contribute to a more equitable financial system for the benefit, in particular, of individuals living in non-Western countries.
