US-based cryptocurrency exchange Coinbase says the second quarter of 2024 will likely be a bullish period for Bitcoin (Bitcoin) and the broader digital asset market.
In a new post on LinkedIn, David Dong, Head of Institutional Research at Coinbase said He says The previously identified headwinds for cryptocurrencies are now in the rearview mirror.
“Looking ahead, the setting for Q2 2024 appears to be more favorable for crypto performance, in our view. However, we believe that these positive factors may emerge more clearly starting from the second half of April.
Duong says that apart from the upcoming halving event that will halve the rewards for BTC miners, the other catalyst that could send BTC prices higher is the entry of large institutions.
According to the CEO of Coinbase, institutions typically evaluate new financial products e.g Monitor Bitcoin exchange-traded funds (ETFs) for three months before offering them to clients.
“[On] On the demand side, the 90-day review period that many telcos use when conducting due diligence on new financial offerings — such as spot Bitcoin ETFs — could end as early as April 10. This means that it is common for top brokers and dealers to conduct rigorous 360-degree assessments before allowing wealth advisors to allocate clients' assets.
Their evaluations carefully examine (1) whether these products meet minimum investment and liquidity limits as well as (2) whether day trading, custody and regulatory reporting activities pose any insurmountable operational challenges to their existing infrastructure.
Financial giants Morgan Stanley (MS), Bank of America (BofA), UBS Group AG and Goldman Sachs (GS) may start offering Bitcoin ETFs to clients after a 90-day review period, Duong says. He also says wire companies outside the United States may follow suit.
“However, money transfer companies such as MS, BofA, UBS and GS are not the only custodians of wealth here. Some of the major wealth management platforms operating in the US are outside these large financial conglomerates.
While three months is the typical (and stated) monitoring period for money managers like LPL Financial, some have shorter and longer windows as well. We believe this could unlock significant capital for US spot Bitcoin ETFs in the medium term.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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