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Matrixport Analyst Predicts Rise in Bitcoin ETFs After $4.3 Billion Binance Deal

Investors appear to have remained concerned amid Binance CEO Changpeng Zhao’s $50 million lawsuit settlement and Binance’s $4.3 billion settlement that sent ripples through the cryptocurrency world. In contrast to recent market sentiment, Matrixport analyst Markus Thielen believes this result is a boon for Binance and predicts its continued dominance over the next 2-3 years.

Additionally, Thielen foresees an increase in supported exchanges and sees this deal as a catalyst for the long-awaited approval of a spot Bitcoin ETF in the United States.

Binance deal will raise expectations for Bitcoin ETFs

Markus Thielen of Matrixport emphasizes the regulatory impact of the Binance deal and claims that the cleanup of the industry by US agencies positions Bitcoin as a safe haven asset. Meanwhile, the expected increase in supported exchanges, along with increased scrutiny, sets the stage for the long-awaited approval of a Bitcoin spot ETF.

Notably, Thielen states in a recent interview with CNBC that the deal dramatically increases the likelihood of a Bitcoin spot ETF next year, marking a fundamental shift from unregulated to regulated exchanges in the crypto landscape.

As the industry adapts to a more regulated environment, institutions are expected to take center stage in 2024, with Bitcoin potentially becoming a focal point in investors’ portfolios. Meanwhile, the future, marked by regulatory hurdles and institutional adoption, promises transformative developments in the crypto space.

Also read: Sam Altman returns to OpenAI, what happens now with Microsoft?

Legal turmoil on Binance

According to recent reports, Binance CEO CZ agreed to pay a fine of $50 million, while Binance faces a payment of $4.3 billion. On the contrary, Matrixport analyst Markus Thielen sees this as a favorable outcome, suggesting that with CZ’s resignation and the smaller-than-feared fine of around $10 billion. Furthermore, he predicts that Binance is poised to maintain its status as one of the top three cryptocurrency exchanges in the near future.

The settlement, which addresses money laundering violations and other charges totaling $898 million, includes agreements with FinCEN, OFAC and CFTC, of which $1.8 billion will go to these agencies. Although CZ is banned from operating a business for three years, the possibility of a “clean” return to Binance remains open.

Fidelity Investments expands its offerings by focusing on the metaverse and ETFs

The international investment firm Fidelity Investments has decided to invest in companies from the metaverse. Fidelity Investments has now launched four new exchange-traded funds (ETFs) that would focus on two new products to take advantage of the nascent Web3 space.

ETFs will focus on three broad criteria, namely cryptocurrencies, metaverse and environment, society and governance (ESG).

The Fidelity Metaverse ETF (Ticker FMET) and the Fidelity Crypto Industry and Digital Payments (FDIG) ETF went live on Thursday, April 21.

The Fidelity Crypto Industry and Digital Payments ETF does not provide direct access to cryptocurrencies, but will invest in the companies that support the digital asset industry.

Fidelity Investments will be responsible for building and contributing to the “future state of the Internet”.

Competition in the already crowded metaverse?

Fidelity is entering an already saturated market, where a dozen ETFs are already trading on the market. In addition, there are many companies that have decided to launch “themed” funds for younger generations.

We continue to see demand, particularly from young investors, to access fast-growing industries in the digital ecosystem, and these two themed ETFs offer investors exposure in a family-friendly investment vehicle, said Greg Friedman, Managing Director and Chief ETF Strategy Officer at Fidelity. .

As mentioned above, younger generations have become increasingly familiar with the metaverse.

Along with that, a lot of awareness of where the metaverse could be headed has led the younger generation to explore further.

BlackRock Inc. is one of those companies that has focused on “themed” funds that cater to the younger population.

Fidelity may face stiff competition when it comes to the themed environment, with many companies already operating in the space. However, the size and scale of the company will likely give it an edge over its immediate competitors.

Bloomberg Senior ETF Analyst Eric Balchunas also mentions in his tweet that the investment firm reportedly entered the market at the lowest rate among the other four ETFs tracking the Metaverse.

Fidelity also recently released a Decentraland-based metaverse called the “Fidelity Stack”. This is intended to educate retail investors on the basics of investing.

Related Reading | How Crypto Company Circle Announces $400 Million Backed by Giants BlackRock and Fidelity

Fidelity also intended to launch a Bitcoin Spot ETF

Fidelity continued to push this revolutionary idea to democratize the investments that are ETFs. However, the Securities and Exchange Commission failed to comply.

The US financial regulator has yet to make a decision on this, which is now making the funds launch in other countries with much less difficulty.

For example, Fidelity has just successfully launched the ETF in Canada.

Australia would also receive two Bitcoin Spot ETFs that have been approved for launch in the country.

The asset manager continues to prepare to launch the Cosmos Purpose Bitcoin Access ETF, which refers to investing in the Canadian Purpose Bitcoin ETF.