The past year can only be seen as massively successful for crypto. What will 2022 bring for Bitcoin and the broader crypto industry?
1. More regulation
Crypto investors and entrepreneurs are hoping for a more moderate approach stateside, where the SEC, CFTC, and offices under the Treasury Department have all been advocating for new regulations. For investors, regulations could mean clearer taxation guidelines and even the ability to incorporate crypto investments into retirement accounts. And if prominent cryptocurrency trading tools tailor themselves to regulations, they could help boost adoption by providing an extra layer of security to investors.
2. Bitcoin ATMs multiply
3. Environmental improvements
4. Continued Bitcoin price volatility
5. Crypto ETF approvals
But BITO does not hold any Bitcoin—it’s a way for retail investors to get exposure to Bitcoin futures, not actual BTC. It is not a “spot” ETF. The SEC has been inundated with applications for ETFs that are based on the current price of cryptocurrencies, but has never allowed one. However, based on the performance of BITO and the faith that investors are putting in it, a Bitcoin spot ETF looks highly likely to get through in 2022 or very soon after—along with potential ETFs tied to other cryptocurrencies, which could bring in a flood of new retail investors.