The milestones achieved in 2021 makes the crypto world wonder what lies ahead in the years. As this industry is still in its infancy and growing continuously, it is difficult to forecast where things are headed long-term, but the entrance of institutional money into the market may bring a huge change as predicted by some financial analysts.
Bitcoin’s prices skyrocketed, followed by big drops and more major companies have shown interest in the institutional buy-in. Undoubtedly, this year was a breakthrough.
While there is a growing following of cryptocurrency every year, people are showing more interest in this industry. We have seen people of all ages and from different backgrounds discussing the new topic with undivided attention.
The praise for this publicity goes to all; from the steadfast investors like Elon Musk to dedicated teenagers on Facebook. Interest in the new regulations for crypto has also been shown by the U.S. government officials and the Biden administration.
We have penned down the areas of focus and concern that may change the trends in the crypto world in the future from the eyes of five experts.
The current hot topic among lawmakers around the world and specifically in Washington D.C. is the establishment of rules and regulations in cryptocurrency. The goal is to achieve a safer environment for the investors and minimize cybercrimes.
As the investors are ready to welcome clear regulation in the crypto world, some countries like China have banned all the crypto transactions within the country. On the other hand, The United States is not in favor of outlawing the industry.
The U.S. Security and Exchange Commission Chairman Gary Gensler has shown worry for the investors in case of not implementing stricter regulations for their protection in the market.
The IRS wants to make sure that the cryptocurrency is separately reported by the investors in their taxes. Many U.S. lawmakers and administrations are stressing the introduction of more crypto regulations.
Crypto ETF Approval
A verified exchange-traded fund (EFT) was the key, predicted by some experts to create ease for investments in cryptocurrency. Fortunately, we are expecting some great news in October as the first Bitcoin EFT is making its debut on the New York Stock Exchange.
A new and standard way to invest in crypto will be introduced. The investors will be allowed to buy in cryptocurrency directly from traditional investment brokerages, like Fidelity or Vanguard.
The fund holds the Bitcoin futures contracts that may be unable to track the original price of Bitcoin as it follows the general trends of actual crypto.
Therefore the BITO ETF is not enough and the investors would have to wait for the ETF that claims to hold the Bitcoin directly. BITO is the first to gain ETF approval by the SEC over numerous years.
Lots of trading actions are expected to be seen in the first week. The closer crypto products get to traditional investments, the more Americans could invest and affect the market in return. But the risks in crypto investments are still hovering over the headings. If you are not ready to lose the money, you should not invest in crypto either.
Cryptocurrency is still a new and risky market to invest in without much history. Everyone should remain skeptical about investing big amounts of money. Especially as crypto market for a beginner is really hard.
Broader Institutional Cryptocurrency Adoption
Numerous recognized companies have invested themselves in the crypto industry. The trend is going higher with every passing year. For example, Tesla has invested billions in crypto assets. Paypal and Square have now allowed their users to buy through their platforms. More buy-ins of this sort are expected.
Bitcoin’s Future Outlook
Bitcoin is the best indicator for the crypto market in general as the rest of the markets tend to follow it. There is much debate on the future of bitcoin. As it is limited to transactions, Rogoff claims its different from the physical gold, which makes it easier to fall. Moreover, the verification process of crypto is less efficient than an entrusted bank.
The Future of Cryptocurrency
There are numerous views of the experts on the trends and future of cryptocurrency but due to its wavering nature, it is very important to follow all the themes and get a better understanding of the market.