- Cryptocurrency Regulation
- Crypto ETF Approval
- More Institutional Adoption for Cryptocurrency
2021 has been a defining year for cryptocurrency. Bitcoin and Ethereum the top two cryptocurrencies hit multiple new all-time high prices this year. The interest among the people for cryptocurrencies has also increased significantly this year. Cryptocurrencies have started to be accepted as legal tender by countries and some governments have even shown interest in formulating new regulations for cryptocurrency.
Seeing the new trends in the crypto market, experts have predicted digital assets in 2022.
Lawmakers around the world are working hard to establish rules and regulations to ensure the safety of investors trading in cryptocurrency and to keep cybercriminals away.
While China has completely banned cryptocurrency, the U.S. has decided to create laws and regulations which will help in protecting the interest of the investors. Also, having clear regulations will help in eliminating, “significant roadblock for cryptocurrency”.
Effect of New regulations
The $1.2 trillion bipartisan infrastructure bill signed by the president in November includes crypto tax reporting provisions, allowing provisions for IRS to easily track crypto activity among Americans. The new rules are also expected to ensure that the investors will be able to properly report their crypto transactions.
Regulatory announcements in 2022 are expected to affect the prices of cryptocurrency in a good way. Experts believe that sensible regulations are good for the market and can be a winning situation for everyone.
Crypto ETF Approval
2021 saw the first Bitcoin ETF (BITO) making its NYSE (New York Stock Exchange) debut in October. This development offers investors a more secure way to invest in crypto.
But for some, this is not enough, as funds don’t hold the crypto and are only linked with crypto. The funds only hold the future contracts of Bitcoin and it is believed by experts that it may not be able to hold Bitcoin prices directly. Investors are waiting for an ETF that holds Bitcoin directly.
Effect of EFT
In the first week of its launch, BITO witnessed a lot of trading action. In general, increase in the accessibility of crypto assets in the traditional investment market more will be the people buying it.
Investing in BITO is similar to crypto investment and could be very risky, as it is a speculative and volatile investment. Only an investor who is willing to take risks should think of investing in BITO.
More Institutional Adoption for Cryptocurrency
Various organizations have taken great interest in cryptocurrency and blockchain in 2021. They have started to accept Bitcoin as a medium of exchange and experts believe that this is only going to increase in the future.
Many experts believe that bigger and global corporations will help in jumpstarting the adoption of cryptocurrency furthermore.
Effect of More Institutional Adoption
Accepting Bitcoin as a medium of exchange by more retailers can completely change the landscape for Bitcoin in the future. Further adoption will also bring about more use cases for users, thus having a positive effect on the prices of crypto.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
Photo by – TamimTaban on Pixabay