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After the mishap of the official account of the U.S. Securities and Exchange Commission (SEC) being hacked, the SEC's approval of a Bitcoin ETF has finally settled the dust. Wang Yingbo, Assistant Researcher at the Institute of Information Research of the Shanghai Academy of Social Sciences, told 21st Century Business Herald reporters that the official approval of the Bitcoin spot ETF for trading is undoubtedly a breakthrough moment for the cryptocurrency, bringing significant development opportunities for cryptocurrencies represented by Bitcoin.
After a decade-long journey, the Bitcoin ETF has finally been listed, changing the investment landscape of Bitcoin and allowing institutional and retail investors to invest in Bitcoin without directly holding it.
According to Cao Xiao, Vice Dean of the School of Finance at Shanghai University of Finance and Economics, the SEC's approval of Bitcoin futures ETF listing in October 2021, followed by the approval of Bitcoin spot ETF listing, involved institutions like BlackRock, traditional asset management institutions. This further confirms the asset attributes of Bitcoin, and Bitcoin has effectively become a mainstream asset for allocation.
In terms of operation, issuers will purchase actual bitcoins from cryptocurrency exchanges, stored by custody institutions like Coinbase Global, and then issued as ETFs by the latter. These Bitcoin ETFs will be listed on Nasdaq, the New York Stock Exchange, and the Chicago Board Options Exchange. Furthermore, to address SEC concerns about market manipulation, Nasdaq and the Chicago Board Options Exchange have established a market supervision mechanism in collaboration with the largest U.S. cryptocurrency exchange, Coinbase.
Liu Bin, Director of the Financial Research Office at the Tianchao (Shanghai) Free Trade Zone Research Institute, told 21st Century Business Herald reporters that the approval of the Bitcoin ETF also indicates a significant change in the attitude of U.S. regulatory authorities towards Bitcoin. The fundamental reason is that the United States has established a corresponding regulatory framework for cryptocurrencies like Bitcoin. Cryptocurrencies, represented by Bitcoin, are widely accepted by most financial institutions, and many financial institutions are developing related products around Bitcoin.
After the approval of the Bitcoin ETF, market optimism is on the rise. As a representative of the super-optimistic camp, Tom Lee, Co-founder and Head of Research at U.S. investment firm Fundstrat Global Advisors, even stated that with the approval of ETFs, demand will surge, and Bitcoin may skyrocket to $100,000 to $150,000 within the next 12 months, surpassing the historical high of around $69,000 reached in November 2021. Within the next five years, Bitcoin may soar to $500,000.
However, the greater significance lies elsewhere. Cao Xiao stated that the SEC's approval of the Bitcoin ETF is not important for its impact on the Bitcoin market itself. What is crucial is that it reflects the intention of U.S. regulatory authorities: by fostering the development of the Bitcoin market, guiding financial institutions and technology companies to invest in blockchain technology and its applications, and thus promoting the innovative development of the U.S. financial system. |
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Post time 19-1-2024 21:10:46
