Why Crypto Is Surging Despite Skepticism: CoinShares CSO Meltem Demirors Explains

The crypto market is experiencing a strong rally, but not everyone is convinced. CoinShares CSO Meltem Demirors shared her views on the current market situation in a recent interview with CNBC.

Demirors said that the crypto market is in “the season of the most hated rally,” meaning that many traditional market observers are skeptical and dismissive of the crypto sector’s performance. She said that many people expected crypto to die by now, but instead it has shown resilience and innovation.

She attributed the rally to two main factors: the anticipation of a U.S. spot Bitcoin ETF approval and the perceived regulatory victories for crypto companies like Ripple and Grayscale. However, she also cautioned that these factors are not guaranteed to materialize or sustain the market momentum.

Demirors also discussed the growing interest and adoption of crypto from both institutional and retail investors. She cited the significant inflows into Bitcoin investment products and the potential for spot Bitcoin ETFs to unlock more capital from U.S. retirement accounts. She also commented on the situation of Grayscale’s Bitcoin Trust, which is trading at a discount and could face selling pressure if new products enter the market.

Demirors concluded by stating that the crypto industry needs more regulatory clarity and cooperation from the U.S. Congress, as the existing regulatory bodies have conflicting views and approaches. She said that she hopes to see a bipartisan effort to create a cohesive framework for the crypto sector.