- The crypto market continues to see accelerated growth and legacy and investors are starting to notice.
- Secure Digital Markets (SDM) has carefully curated a crypto ‘Year in Review’ report to inform investors on the crypto market’s outlook after the launch of the Bitcoin ETF.
- Experts believe the adoption of digital assets by institutional investors and wealth managers will be the key driver of digital asset adoption in the next cycle.
The collapse of several high-ranking financial institutions in 2023 – led by Signature Bank and Silicon Valley Bank (SVB) bank – created a ripple effect that led many investors to look more thoughtfully into digital assets and decentralized financial services. A recent report has shown that the crypto market boasts more than 425 million global users and the figure will continue to grow exponentially in the coming quarters fueled by the unquenchable demand from institutional investors.
The recent approval and listing of several spot Bitcoin exchange-traded funds (ETFs) – led by Grayscale Investments’ GBTC and BlackRock Inc.’s (NYSE: BLK) iShares Bitcoin Trust (IBIT) – has opened the floodgates for institutional investors and registered investment advisors to invest into Bitcoin.
In a bid to ensure responsible mass adoption of crypto assets, Secure Digital Markets (SDM), a non-custodial digital asset trading platform that has been operating for almost a decade, has released a comprehensive 2023 Digital Assets Year in Review. The report features exclusive commentary from executives across the industry including Bloomberg Intelligence, Bitwise, MetisDAO, Polymesh, and several other companies.
The Toronto-based digital assets firm, which offers different services including spot market trading, lending, and derivatives, analyzes key market segments including the arrival of the spot Bitcoin ETF, trading, on-chain analysis, mining, and other emerging trends.
Bitcoin and Global Markets
Bitcoin has emerged as the top-performing asset class in the global market since its inception. However, the lack of proper trading tools and infrastructure has prevented the mass adoption of Bitcoin outside of the early adopter segment of the market. But for the first time, fund managers around the world can offer Bitcoin exposure through spot Bitcoin ETFs that invest directly into Bitcoin.
With the expected rise in digital asset ownership from registered investment advisors and institutional investors, the industry is expecting a strong market cycle for Bitcoin, similar to the growth that followed Gold after the 2004 approval of the first spot Gold ETFs. Furthermore, the upcoming Bitcoin halving in April 2024 has been identified as a trigger that has activated bull market rallies in the past. With the introduction of new institutional capital this time around, this cycle might even be more active than previous ones. Additionally, the Federal Reserve has signaled inevitable interest rate cuts this year after a series of hikes in the past two years geared towards lowering inflation to the desired 2 percent.
The report further analyzes Bitcoin’s performance against traditional benchmarks including S&P 500, Gold, and many others.
Yacine Ouldchikh, a senior trader at Secure Digital Markets, said in a statement:
“Bitcoin’s resilience and potential for long-term value make it an integral component of any investment. Our research aims to provide a comprehensive understanding of Bitcoin’s role in global markets, and how it can bolster the return profile of any investment portfolio.”
Highlighting the Role of Educating Investors
One of the key reasons for putting together the report, as pointed out by the SDM research team, was to provide a comprehensive outlook on the market for the cohort of new market participants that are learning about digital assets for the first time.
Mostafa Al-Mashita, co-founder at Secure Digital Markets, noted in the press release:
“In the rapidly evolving world of digital currencies, education is the cornerstone of building trust and confidence for investors. Our research aims to empower market participants with the knowledge needed to make informed decisions in the dynamic crypto market.”
Through the exclusive interviews with several blockchain industry leaders, the report also provides analysis of crypto’s blue chip assets performance, regulations and other market dynamics, as well as reviewed altcoin liquidity, trading and trends.
