Expect momentum to begin building for the digital token market, according to Standard Chartered head of crypto research Geoff Kendrick, citing the entrance of new investors as a driver.
Cryptocurrencies are staging a strong rally with capitalization of the broader market nearing $2 trillion and Bitcoin exceeding $1 trillion, according to data from CoinMarketCap. And this latest wave is expected to persist, said Standard Chartered head of crypto research Geoff Kendrick.
«This year, I think we get about $50 to $100 billion of net inflows [into crypto ETFs],» he predicted in a «Yahoo Finance Future Focus» video. «I think we can now start to build momentum.»
Pension Entrance
According to Kendrick, more investors are likely to enter the market following the issuance of Bitcoin ETFs and the anticipated Ethereum ETFs, especially as negative noise from Grayscale outflows and FTX fade into the past.
«And what we're now going to see in the US is the 401(k) market, i.e. pensions, et cetera enter Bitcoin and other assets in this space,» he said.
Traditional Finance
Although some major players in traditional finance – also known as «TradFi» – have expressed skepticism, Kendrick believes that it is only a matter of time before the digital asset class properly enters the mainstream.
«So with the spot ETF, the market is becoming more normalized, which I think is necessary at this juncture of growth. You'll then start to see a build out of the options market, the futures market, et cetera, as well as TradFi comes online,» he explained. «And you then start to see some of the bigger institutional money, perhaps reserve managers, et cetera, also start to get involved with their counterparts like banks like ours.»
