The approval of spot bitcoin ETFs will lead to an enormous growth within the bitcoin lending markets, as conventional finance and crypto market-makers alike will be capable to arbitrage worth variations between numerous funding automobiles in addition to spot BTC costs. Till not too long ago, a few of the bigger TradFi market makers had not participated in crypto or bitcoin as a result of the arbitrage alternatives necessitated them getting concerned in unregulated venues.
With spot bitcoin ETFs obtainable in locations like Nasdaq, bitcoin by-product merchandise within the Chicago Mercantile Trade and spot bitcoin in regulated exchanges like Coinbase and Kraken, establishments now have all of the instruments they should make markets. They’ll want yet another factor — bodily bitcoin stock.
