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Spot Bitcoin ETFs Soar As 21Shares Celebrates Historic Success, VanEck Faces Challenges – What’s Next for Crypto?

The co-founder and president of 21Shares, Ophelia Snyder, expressed her enthusiasm about the success of spot Bitcoin ETFs during a recent interview with Bloomberg on January 30. 

The collaboration between 21Shares and Ark Invest resulted in a joint spot Bitcoin ETF, approved by the U.S. Securities and Exchange Commission (SEC) on January 10.

Most Successful Launches in History

Snyder praised the recent approvals, highlighting the significant influx of funds into these ETFs, positioning it as one of the most successful ETF launches in history. With over $600 million pouring into their product in recent weeks, it marks a remarkable achievement.

She finds this trend particularly exciting as it draws from a diverse base, introducing advisors to the crypto community and shaping the future of the ecosystem.

Addressing the broader picture, Bloomberg reported total inflows across all spot Bitcoin ETFs amounting to $1 billion. Addressing potential concerns about this figure being relatively modest given the pre-approval hype, Snyder downplayed such apprehensions. 

She highlighted the ongoing process of integrating ETFs into more platforms and making them widely accessible to advisors, a transformation expected to unfold over the next three months.

VanEck CEO Identifies Pivotal Challenges

In a recent interview, Jan van Eck, CEO of global investment management firm VanEck, shed light on two significant obstacles obstructing the tokenization of real-world assets (RWAs).

Van Eck highlighted the primary challenge of ensuring there’s enough money available for tokenized assets, posing the question of who would provide liquidity for tokenized assets. 

He further spotlighted the urgent need for advanced market mechanisms and urged for a developing regulatory environment that supports the tokenization of real-world assets (RWAs) by providing clear rules and backing for these groundbreaking ideas.

Van Eck noted that the existing regulatory environment in the U.S. presents obstacles for such ventures and is unlikely to be the primary choice for tokenized markets until significant changes occur. 

Despite a positive shift in regulatory attitudes towards tokenization, the absence of clear industry regulations is expected to impede progress in this transformative space.

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