European Investors Favor Bitcoin Following ETF Launch

Over the
last few months, investor sentiment towards individual cryptocurrencies has
favored Ethereum (ETH) over Bitcoin (BTC). However, the release of the
first-ever spot exchange-traded funds (ETFs) for BTC has changed the balance of
market forces, and now there is a much more bullish positioning towards the
oldest cryptocurrency. This is especially true as its price has reached the
highest levels in two years, exceeding $50,000.

Spectrum
Markets, a pan-European trading venue, released data showing diverging
sentiment among retail investors regarding Bitcoin and Ethereum
cryptocurrencies in January 2024.

The
company’s Spectrum European Retail Investor Index (SERIX) for Bitcoin rose to
109 points, indicating bullish sentiment, while the index for Ethereum dropped
from 120 points to 103 over the same period. The SERIX scale designates numbers
above 100 as bullish and below as bearish.

This shift
coincided with the US Securities and Exchange Commission (SEC) approving
several Bitcoin ETFs on January 11. The regulatory move opened Bitcoin
investments to a wider range of investors. No similar approval has occurred yet
for Ethereum products.

Michael
Hall, the Head of Distribution at Spectrum Markets, commented that the SEC
approval addresses demand for “enhanced regulatory standards” around
cryptocurrencies.

“Meanwhile,
in the EU, a bitcoin ETF is still not possible under existing regulation
Regulation

Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (

Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though…