This comes no less than 10 years after the Winklevoss brothers’ first application and enables investors to access bitcoin the same way they would purchase stock and bond index funds. As of today, there are eleven US spot bitcoin ETFs trading and analysts at Standard Chartered Bank anticipate fund inflows in the range of $50 billion to $100 billion in 2024. This development marks a major step towards accelerating the institutional adoption of bitcoin. Bitcoin’s supply is limited so increased demand amid constrained supply should put upward pressure on prices. We have already seen prices climb significantly last year on anticipation of the decision. As reported recently by CNBC, Galaxy Digital stated in October that the “strongest marginal improvement” occurred when portfolios moved from a 0% to a 1% bitcoin allocation. As far back as 2019, WisdomTree claimed that adding bitcoin to a traditional 60% equity/40% bond allocation would improve the risk-return profile and that from 2014 to 2019 “even a one percent allocation led to an 8.3% outperformance versus the base portfolio”. The types of funds likely to jump quickly into the market are those with a focus on high-growth tech stocks. We could also see significant adoption by commodity-based funds that would promote bitcoin as a form of digital gold. Kelvin Lam, CFA, Head of Institutional Research for OKX, outlines his three predictions for the institutional crypto market in 2024: https://lnkd.in/drk-Ue4q