Andrew Peel, head of digital asset markets at Morgan Stanley, emphasized the importance of spot Bitcoin ETF approvals in a recent investor note. He stated that these approvals are a very important milestone in the adoption of Bitcoin by the global financial system.
Fifteen years ago, Bitcoin was merely an idea discussed on an internet forum, according to the note. Today, it has become a major player in the financial world with its adoption by Wall Street in the form of spot Bitcoin ETFs. According to Peel, this development may indicate “a potential mindset shift in the global perception and use of digital assets.”
Peel also gave an overview of the current threats to the US dollar’s reign as the world’s reserve currency. Currently, 60% of global foreign exchange reserve balances are held in dollars. By contrast, the Chinese yuan accounts for only 2.5% of these balances, despite the country’s recent efforts to increase its foreign trade.
However, several “de-dollarization” threats could erode the dollar’s dominance, according to the analyst. One of these threats is the “remarkable” worldwide adoption of Bitcoin. Peel stated that 100 million people worldwide own crypto money and there are Bitcoin ATMs in 82 countries.
Peel also noted that stablecoins could potentially be the “strike application” of crypto. He noted that stablecoin transaction volume has rivaled traditional digital clearinghouses such as Visa and PayPal in recent years.
*This is not investment advice.