While a Bitcoin ETF is unlikely to begin trading on US exchanges this year, John Liu, head of Web3 and Blockchain products at Amazon Web Services, believes that such an investment product will be an important catalyst for institutional adoption of the cryptocurrency.
The market turmoil amid expectations of a US-based Bitcoin spot ETF is also reaching Amazon, one of the world's largest cloud services and e-commerce corporations.
Recently, John Liu, head of Web3 and Blockchain products at Amazon Web Services, said that the possible launch of a Bitcoin spot ETF will strengthen institutional adoption of Bitcoin.
Speaking at the Future of Digital Assets conference in New York City on Tuesday, November 14, Liu reviewed the progress that Bitcoin and the crypto industry have made in recent months, helping it regain investor interest and attract more institutions to the blockchain ecosystem.
During his speech, Liu said that the acceleration of innovation in the cryptocurrency industry since 2021, when the price of Bitcoin reached its current all-time high, has been reinforced by the growing institutional demand for cryptocurrency and blockchain technology.
Despite the bear market seen last year, Liu noted that More companies are “taking note” of the potential that Bitcoin offers and blockchain and that the possible launch of a Bitcoin ETF in the US market will only increase this interest. He also noted that BlackRock's entry into Bitcoin opened the doors to get more institutions interested in cryptocurrency.
The Bitcoin Spot ETF would serve as “a gateway to conventional liquidity", were the reflections of the head of Web3 and Blockchain at Amazon Web Services, during the conference on the future of digital assets.
Bitcoin ETF and the resurgence of tokenized assets
One of the main areas of interest of institutions in the crypto industry, at present, is the asset tokenization.
Corporations and entities have been exploring the benefits of blockchain to improve liquidity, increase capital efficiency, optimize management, increase settlement speed, and encourage cost savings. Based on this, Liu believes that asset tokenization can serve as a a bridge between traditional finance and the digital asset space, further incentivizing institutional participation in Bitcoin.
The Amazon Web Services executive emphasized that companies that want to gain exposure to Bitcoin and cryptocurrencies will be able to do so more easily through an ETF. He also noted that companies that want to take advantage of the blockchain do not have to build a new specialized infrastructure from scratch. “I think that’s the emotion behind it.”Liu said.
Amazon is one of the entities that has been exploring tokenization, along with Mastercard, in order to speed up online purchases for its customers.
During the conference, Liu also talked about stablecoins and how these digital currencies are currently contributing to the efficiency of payments.
While US regulators remain hesitant to approve the launch of a Bitcoin spot ETF, the crypto community and institutional investors are eagerly awaiting the arrival of this investment vehicle on the market.
This week is crucial for the Bitcoin ETF, as one of the key dates is approaching when the SEC could announce a decision on this crypto investment product.
However, most investors believe that the most likely date for a Bitcoin spot ETF to be approved is January of next year. Others believe that this listed investment vehicle will not arrive until late 2024 or even early 2025.
Continue reading: When will a Bitcoin ETF be approved?
