Banks Will Invest in Blockchain When They Make Money from Bitcoin ETF + More Crypto News

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The US Securities and Exchanges Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs) is a big deal – to say the least.

Per blockchain platform Swarm Markets’ co-founder Timo Lehes,

“The shift for digital assets into regulated realms, and the steps taken by major household-name institutional finance into the space is nothing short of a ‘big bang’ moment.”

Making these financial instruments legal signals to the market that institutions who look to fully comply can unlock new opportunities. This is particularly the case in the digital real-world asset (RWA) space. Here, the new technology is remaking opportunities underpinned by tangible assets, Lehes said in an email.

Chief Business Development and Communications Officer Katie Evans commented that blockchain is “a back office revolution and the approval of a bitcoin ETF is the gateway drug for major financial institutions adoption.”

Evans opined that,

“Until large financial institutions earn revenue from a space or asset class, they won’t invest in it, which is why making money from the Bitcoin ETF is the first step on that adoption curve for blockchain technology at large. The Bitcoin ETF is just the start.”

Blockchain’s killer use case is for the more efficient trading of traditional assets. Real-time settlement will change the risk profile of capital markets globally, she said.

If a bank or asset manager wants to trade a commodity, stock, or bond, they have to go to a designated venue. But “money goes where it’s most efficiently put to use.”

Tokenization brings all assets onto one trading infrastructure.