Shift To Crypto: 401K Market Poised To Enter Bitcoin ETFs, Standard Chartered Analyst Says

Standard Chartered Analyst Geoff Kendrick recently shared his insights into the future of traditional finance and its intersection with the crypto sphere after the launch of spot Bitcoin Exchange-traded funds (ETFs) in the US.

Kendrick predicts traditional fund managers will turn to crypto investments due to their recent performance and the launch of new crypto-based products soon.

Retirement Fund Managers Ready To Flock To Bitcoin ETFs

In an interview for Yahoo Finance Future Focus, Geoff Kendrick, Head of Crypto Research at Standard Chartered, shares what he believes are the important takeaways of the current economic landscape for the United States.

According to the analyst, the US Federal Reserve hints at interest rate cuts coming later in 2024. This decision could potentially decrease volatility, positively affecting “long-duration assets like Bitcoin and Ethereum.”

Kendrick suggests that the “robust” confidence of investors in the two largest cryptocurrencies helped their strong performance despite inflation:

Actually, Bitcoin and Ethereum and risk assets more broadly have held in very, very well. And I think that’s because we’re now in a situation where we know the cuts are coming because inflation is coming down, most importantly. And the economy remains pretty strong. So there’s a lot of cash that’s been investing in those new ETFs.

The large outflows seen during the first weeks after the launch of the Bitcoin ETFs were also a matter of concern to investors, as the largest cryptocurrency price stability was briefly affected. However, the analyst considers the occurrence as a one-time thing, led mainly by the FTX-related outflows:

As I say, most of that Grayscale noise is out of the way. The FTX component of that, which is about $1 billion in and of itself is all done. And so now I’m very positive on those inflows. And most importantly for Bitcoin, it should mean volatility comes lower. And so if vol is lower, the asset class again becomes much more attractive.

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Author: Rubmar Garcia

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