Morgan Stanley: Spot Bitcoin ETFs Could Reshape Global Crypto Attitudes
The crypto landscape has changed dramatically over the past few years, with stablecoin volumes challenging traditional payment giants like PayPal and Visa.
Wall Street is now taking a keen interest in this transformation, specifically through the emergence of spot Bitcoin (BTC) ETFs.
According to Andrew Peel, the head of digital asset markets at investment banking giant Morgan Stanley, this development could signify a “potential paradigm shift in the global perception and use of digital assets.”
In a recent note to investors, Peel examined the current challenges facing the U.S. dollar’s dominance as the world’s primary reserve currency, with 60% of global foreign exchange reserve holdings denominated in dollars.
In stark contrast, China’s yuan accounts for a mere 2.5% of these reserves, despite the country’s efforts to bolster its international trade standing.
Peel outlined various factors contributing to the erosion of the dollar’s supremacy, including the “remarkable” global adoption of Bitcoin, with an estimated 100 million people worldwide holding the cryptocurrency and Bitcoin ATMs operating in 82 countries.
Notably, major entities such as Tesla and even a sovereign nation, El Salvador, have embraced Bitcoin.
Nevertheless, Peel highlighted that stablecoins might emerge as crypto’s “killer app.”
Stablecoin trading volumes have reached levels comparable to established digital clearinghouses like Visa and PayPal.
Even Visa and PayPal themselves have ventured into the stablecoin arena, with Visa integrating USDC on Solana and PayPal launching the PYUSD stablecoin.
Contrary to expectations of a massive influx of fresh capital, JPMorgan analysts suggest that spot Bitcoin ETFs may experience up to $36 billion in inflows redirected
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