Bitcoin is listed in portfolios – Kommersant FM
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Bitcoin surpasses $47K mark on approval of cryptocurrency exchange-traded funds. The American regulator (SEC) has allowed ETFs from a dozen large investment companies from the United States to enter the market. Now the crypto community expects that demand for Bitcoin will begin to grow, and the coin itself will continue to rise in price. How reasonable is the forecast? And what does ETF approval mean for the market?
Philipp Vasiliev, portfolio manager of the Hardcore Capital Labs fund, answered these questions to Kommersant FM: “Large financial conglomerates can now safely buy bitcoin on the exchange, which is much easier. Previously, there were several ways to purchase cryptocurrency. One of them is to invest in a closed-end fund, the second option is to buy directly, but then it is not clear how to legally structure this and explain it to your investors. And here comes a tool that can easily be included in any portfolio.
Based on this, everyone expects Bitcoin to follow the fate of gold. He did not have a spot ETF for a long time, and with its appearance, the demand for this precious metal has increased significantly. Many began to list it in their portfolios and offer it to clients.
Most individuals in the United States keep savings in the form of retirement savings. They have financial advisors who will now be able to buy Bitcoin for their clients. Previously, everything was much more complicated: first you had to close part of your pension account, lose interest on income, tax deductions, and buying a coin directly for individuals was very problematic. And now, within the market, you can easily go to any exchange and buy bitcoin from the fund.”
On January 10, a fake entry about the approval of a Bitcoin ETF appeared on the account of the American regulator on the social network X. This excited the market. For several minutes, the price of the first cryptocurrency fluctuated between $45 thousand and $48 thousand. Later it turned out that the page was hacked.
The impact of official approval on the exchange rate will not be noticeable immediately, believes blockchain consultant Denis Smirnov: “We will only be able to see the full impact of the adoption of Bitcoin ETF on the market in the medium term. This will happen when the market participants that the cryptocurrency community has been dreaming of seeing in it for the past 15 years are given the opportunity to enter.
The volume of funds that could flood into the market in the near future seems serious compared to everything we have seen in previous years. The principle of “buy on rumors, sell on news” has not gone away, and it is likely that we may see this correction in the near future.
But it is much more important here to look specifically at the medium term and the long-term consequences of such a decision. Most likely, we will see an ever-increasing demand for the first cryptocurrency, which will continue to grow throughout 2024.”
However, some specialized publications are wary of ETF approval. They believe that traditional financial institutions will gain control of most of Bitcoin and this will hurt the market. True, this may also have positive consequences, notes Nikita Zuborev, senior analyst at Bestchange.ru:
“The main fears are that most of them will leave the open market for funds and settle in them. However, this can have both positive and negative effects. If we consider a positive scenario, then there will simply be fewer free bitcoins, which, with stable demand, will increase its value.
The threat comes from market regulation. Perhaps big players will come and regulate this market more carefully, but, of course, this is unlikely to directly affect the price or any services. The market is likely to benefit from an influx of investment because infrastructure will develop. This will become something big and not just a toy for speculators.”
The Securities and Exchange Commission has rejected applications for Bitcoin ETFs for 10 years. The regulator said in a statement that the approval was influenced by a decision by the Court of Appeals for the District of Columbia Circuit. He ruled that the commission failed to adequately explain the reasons for refusing to list the Grayscale Bitcoin Trust (BTC).
Everything is clear with us – Telegram channel “Kommersant FM”.
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