Spot Bitcoin ETF Goes Live on Euronext Amsterdam
In the latest episode of Cointelegraph’s podcast, analyst Marcel Pechman discusses the first spot Bitcoin exchange-traded fund (ETF) approved in the European Union, which went live on the Euronext Amsterdam exchange on Aug. 15. Despite the unconventional choice of the Guernsey regulator for its constitution, the fund’s listing on Euronext suggests a strategic maneuver. However, its small launch size of 1 million euros and unfamiliar management raise concerns about its appeal.
US Bitcoin ETF Decision Delayed
Pechman then shifts focus to the United States Bitcoin ETF landscape, where the Securities and Exchange Commission (SEC) has once again delayed its decision on approving a spot Bitcoin (BTC) ETF. The potential deadline for approval is now set for early 2024. This ongoing cycle of postponements highlights the challenges faced in the past decade and the lack of regulatory clarity in the US cryptocurrency market.
Bitcoin’s Price Trajectory
Pechman also discusses Bitcoin’s price trajectory. According to Bitcoin investor Jesse Myers, breaking the $100,000 barrier is closely tied to the block subsidy halving in mid-2024. Myers challenges the efficient market hypothesis, suggesting that the market will take 12 to 18 months post-halving to fully assimilate the implications. Pechman acknowledges that predicting market outcomes is challenging, considering factors such as Federal Reserve decisions, banking liquidity, economic conditions, and unforeseen events that can influence Bitcoin’s trajectory.
Bitcoin’s Value and Inflation
Pechman concludes by emphasizing the primary drivers of Bitcoin’s value: the abundance of fiat currency and government debt. While he foresees Bitcoin surpassing $100,000, he also highlights the potential impact of inflation on its real-world purchasing power. This suggests that even with a higher price, Bitcoin’s value may be diminished due to inflation.
Hot Take
The approval of the spot Bitcoin ETF in the European Union and the ongoing delays in the US highlight the contrasting approaches to cryptocurrency regulation. While the EU embraces innovation, the US remains cautious. Bitcoin’s price trajectory and its real-world purchasing power are also important considerations for investors. As the market evolves, it will be interesting to see how these factors shape the future of Bitcoin.
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