Circle’s co-founder and CEO, Jeremy Allaire, is optimistic that the new wave of Bitcoin exchange-traded funds (ETFs) will be approved as many of the past concerns are being addressed. He stated during an interview with Bloomberg at the World Economic Forum that mature spot markets, well-regulated custody infrastructure, and good market surveillance are being established, making it more likely to be approved for general investor access. The U.S. Securities and Exchange Commission (SEC) has received multiple spot Bitcoin ETF applications from major asset managers such as BlackRock (BLK) and Invesco (IVZ).
The creation of a market surveillance mechanism is seen as the key to getting these spot ETFs approved, similar to the situation in Ontario where regulators wanted to see a mature custody ecosystem in place before approving the first Bitcoin ETFs to trade in Toronto. ProShares’ Bitcoin Strategy ETF (BITO), a Bitcoin futures fund, recently recorded the highest weekly inflow in over a year, with investors pouring in $65 million, demonstrating that the asset class still has considerable interest from investors.
Allaire also mentioned that Circle is seeing demand for digital dollars in emerging markets, with Singapore and Hong Kong leading the way. We’re paying very close attention to that, he said.