As supply-chain woes continue and the U.S. dollar battles to fight back inflation concerns, crypto remains an alluring port in the current financial storm. The recent approval of the first Bitcoin (BTC) futures-linked exchange-traded fund (ETF) to trade on both the NYSE and Nasdaq from asset managers ProShares and Valkyrie Funds, respectively, has created a whole new class of financial instrument, with resulting excitement in the markets. Valkyrie received explicit approval from the United States Securities and Exchange Commission (SEC), while the ProShares ETF was simply not opposed.
This caps a big year for institutional finance interest in crypto. There was Coinbase’s monstrous $64 billion NASDAQ direct listing, while large pre-initial public offering (-IPO) venture capitalists (VCs) like Andreessen Horowitz (a16z) have also launched their own billion-dollar funds focused exclusively on crypto.
The financial excitement is not just confined to the industry’s biggest names either. It is reported that crypto-related startups raised more than $2.6 billion in the first quarter of 2021, which is more than they did in all of 2020.
For crypto to truly be a serious investment vehicle that holds up to competition, rather than just be a passing fad that is the 21st century equivalent of a gold rush or tulip mania, it has to secure long-term support from institutional finance as a serious investment alternative.
Easier said than done. So, how does crypto do it?
Come down from your fences and open the…