US-based cryptocurrency exchange Coinbase says the second quarter of 2024 is likely to be a bullish period for Bitcoin (BTC) and the broader digital asset market.
In a new post on LinkedIn, David Duong, head of institutional research at Coinbase, said: To tell That the previously identified headwinds to cryptocurrencies are now in the rearview mirror.
“Looking forward, in our view, the Q2 2024 setup appears to be more favorable for crypto performance. That said, these positive factors will become more evident from late April. I think there is a possibility that it will appear.”
Duong said that apart from the upcoming halving event that will cut BTC miners' rewards in half, another catalyst that could increase the price of BTC is the entry of large institutions.
According to Coinbase executives, financial institutions typically evaluate new financial products such as: Bitcoin Exchange Traded Funds (ETFs) will be spot on for three months before being offered to customers.
“[On] On the demand side, the 90-day review period that many news agencies use when conducting due diligence on new financial products such as Spot Bitcoin ETFs could end as early as April 10th. . That means large broker-dealers typically conduct rigorous 360-degree assessments before allowing wealth advisors to allocate client assets.
Their assessment will determine whether (1) such products meet minimum investment and liquidity standards, and (2) whether the required day-to-day trading, custody and regulatory reporting activities cannot be overcome by existing infrastructure. We will thoroughly inspect whether the above issues are being met. ”
Mr. Duong said financial giants Morgan Stanley (MS), Bank of America (BofA), UBS Group AG, and Goldman Sachs (GS) will offer Bitcoin ETFs to customers after a 90-day review period. He said there is a possibility of starting. He also said news agencies based outside the United States could follow suit.
“That said, news companies like MS, BofA, UBS, and GS are not the only gatekeepers of wealth here. Some of the major wealth management platforms operating in the United States are external to these large financial conglomerates. exists in
The typical (and stated) observation period for asset managers like LPL Financial is three months, although some have shorter or longer periods. We believe this could free up significant capital for US-based spot Bitcoin ETFs in the medium term. ”
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