Bitcoin ETF Officially Approved, Here's The Impact On The Indonesian Crypto Market

Illustration (Photo: Doc. Antara)

JAKARTA - The United States Securities and Exchange Commission (SEC) officially approved the first Bitcoin Spot Exchange-Trad (ETF) on Wednesday 10 January 2024.

With the approval of the first Bitcoin ETF spot in the US, how it will impact and influence the crypto market, including in Indonesia.

The Bitcoin ETF decision has long been awaited by all global crypto activists.

The reason is, the approval can be a step that is considered a milestone for the crypto market.

On the other hand, the SEC's decision received positive responses from many industry leaders, including Tokocrypto CEO Yudhono Rawis saying Bitcoin's ETF approval could have a positive impact on Bitcoin and the crypto market as a whole.

This can increase Bitcoin demand and prices in the spot market.

"We welcome and positively the approval of the first Bitcoin Spot ETF in the United States by the SEC. This is an important step in regulatory recognition of cryptocurrencies and is a positive momentum for the overall crypto industry," he said in a press release, Thursday, January 11.

Furthermore, Yudho emphasized how this ETF can have a significant positive impact, especially for investors.

The ETF will provide easier and more affordable access for investors to invest in, especially Bitcoin.

This can encourage increased adoption and investor confidence to significantly encourage the growth of the crypto industry.

In addition, Yudho highlighted the potential for increased liquidity and volume of transactions in the market as a direct result of the ETF.

In addition, the approval of Bitcoin ETF by the SEC can increase the attention of regulators in Indonesia towards crypto assets.

According to Yudho, the approval of Bitcoin ETF Spot could be a signal for regulators in Indonesia that cryptocurrencies are increasingly being adopted by institutional investors and the general public.

"Crypto has become an instrument of investment that is increasingly mature and reliable," he said.

Yudho, who also serves as Deputy Chairperson of the Indonesian Crypto Asset Traders Association (Aspakrindo) hopes that decisions related to the ETF will encourage Indonesian regulators to develop more comprehensive regulations for the crypto industry, creating a safer and more orderly environment for crypto industry players in the country, in line with supporting innovation and economic growth.

He described high hopes and optimism for the future of the crypto industry, not only globally but also in Indonesia.

"Imagine if large traditional financial institutions in Indonesia are allowed and follow the steps of institutions in the US after the ETF is approved. For example, if large banks in Indonesia allocate 0.1 percent of their balance sheet to Bitcoin, then crypto market liquidity in Indonesia will increase significantly. The banks will buy Bitcoin in official crypto asset traders in Indonesia, so that it will encourage significant businesses and industries," said Yudho.

With Spot's Bitcoin ETF approval, the door has wide open for further innovation and deeper integration between traditional financial markets and the crypto world, as well as encouraging the development of Bitcoin-related products and services.

Currently, Aspakrindo is still waiting for government regulations regarding the transition and supervision of crypto assets from the Commodity Futures Trading Supervisory Agency (CoFTRA) to the Financial Services Authority (OJK).

The association has also expressed its support for coordination between institutions, such as Bank Indonesia (BI) and CoFTRA to prepare for the transition by forming a Transitional Team which will be coordinated by the OJK.