Coinbase Inc. (NASDAQ:COIN) suggested that the approval of spot Bitcoin (CRYPTO: BTC) ETFs in the U.S. could create opportunities for a new class of investors, including institutional investors and retirement funds.

What Happened: The Coinbase report indicates that spot Bitcoin ETF approval could significantly ease the investment process for large institutions and money managers, reported CoinDesk. This could potentially enhance market liquidity and improve price discovery for all participants.

David Duong, head of institutional research at Coinbase, was quoted in the report, “The opportunity is potentially much greater than just enabling new capital to access the crypto market.”

Duong sees a regulatory-compliant investment vehicle as a catalyst for new product development, which could expand the current crypto offerings for accredited investors and promote wider adoption.

See Also: BlackRock ‘Increasingly Confident’ About SEC’s Approval Of Its Spot Bitcoin ETF: Report

The report also highlights the potential of this development to bring billions to the total crypto market cap. It suggests that ETFs could pave the way for a more regulated environment, promote inclusivity, and stimulate significant demand growth.

With rising geopolitical tensions and increasing economic dysfunction, Coinbase believes this development would spotlight Bitcoin as a viable alternative to the traditional financial system as we approach 2024.

Why It Matters: The anticipation is building as the Securities and Exchange Commission (SEC) inches closer to approving the first U.S. spot Bitcoin ETF. Nine asset management firms, including BlackRock, WisdomTree, and Valkyrie, are awaiting approval.

Experts predict the first green light could come as soon as 2024. The potential approval of a spot Bitcoin ETF has already triggered a surge in Bitcoin’s price, which reached an 18-month high of $37,970 last week.

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