Coinbase Analysts Believe Spot Crypto ETFs Will Reduce Bitcoin’s Volatility

According to analysts at Coinbase, the introduction of cryptocurrency exchange-traded funds (ETFs) in the US market will lead to a gradual decrease in the volatility of Bitcoin.

Institutional investors now view digital currency as a form of “digital gold,” and as such, they are not willing to allow for any fluctuations that could result in a sudden crash or surge in asset value.

The Federal Reserve has shown no urgency in lowering interest rates, as the global economic situation remains uncertain.

This lack of action by the Fed is creating an environment that is likely to see increased demand for assets like gold and silver, which are traditionally seen as safe investments.

Coinbase predicts that this will also lead to an increase in demand for Bitcoin. If investment funds and banks start shifting their investments towards cryptocurrency, they will likely work to maintain a stable BTC rate, as any turbulence could threaten their savings.