Is Crypto Cleaning Up Its Act?

New research suggests that the market’s recent self-regulation efforts are more than a PR stunt.

The Crypto Market is Maturing

The crypto-asset market is growing up. Recent research suggests that the market’s self-regulation efforts are paying off, and the industry is becoming more mature. This is partly due to firmer regulation and a greater willingness of crypto-asset creators to accept existing regulation.

Crypto market growth

But there is also evidence that innovative moves by crypto-asset issuers to create new vehicles for investment in crypto-assets have improved price efficiency and market liquidity, making investment in crypto-assets safer for investors.

“The crypto-asset market is plainly on a path aimed squarely at the financial mainstream.” - Industry Insider

A New Era for Bitcoin Investment

In January this year, the SEC approved spot trading on exchanges of funds invested in Bitcoin, making investment in Bitcoin accessible to ordinary investors. These Exchange Traded Funds (ETFs) raise funds through a share issuance to purchase Bitcoins that are then stored in a secure digital vault. The price of the ETF shares, therefore, reflects the dollar price of Bitcoins, and effectively allows ordinary investors to trade in Bitcoins without incurring the custody risks.

Bitcoin ETF

This approval marks a significant milestone in the development of the crypto-asset market, and paves the way for further growth and adoption.

Conclusion

The crypto-asset market is maturing, and recent self-regulation efforts are paying off. With innovative new investment vehicles and greater regulatory clarity, the market is poised for further growth and adoption. As the industry continues to evolve, one thing is clear: crypto is here to stay.