The Potential Threat of Bitcoin ETFs to BTC
Arthur Hayes, the founder of BitMEX, has expressed concern that the launch of spot Bitcoin ETFs could have a detrimental impact on the original cryptocurrency. He argues that if these ETFs, managed by traditional asset managers, become too successful, they may “completely destroy Bitcoin.” Hayes believes that as more people choose to invest in ETFs rather than hold Bitcoin directly, Bitcoin transactions will decline. This scenario could lead to miners shutting down their operations due to unsustainable energy costs, ultimately resulting in the demise of Bitcoin.
BlackRock Makes Amendments to ETF Filing
Despite Hayes’ warning, traditional firms like BlackRock continue to pursue the approval of a spot Bitcoin ETF. BlackRock recently submitted a revised filing with a $10 million seed funding proposal, indicating its readiness for a potential launch. Bloomberg analyst James Seyffart suggests that this aligns with predictions of a January launch. The revised filing incorporates SEC-recommended in-cash redemptions into the application.
The Resilience of Bitcoin’s Price
Despite the anticipation surrounding Bitcoin ETFs and their potential impact, Bitcoin’s price has shown resilience. While briefly reaching $44,000 before correcting to $43,642 at the time of writing, it remains below the key resistance level of $44,400. Crypto trader Marco Johanning believes that there won’t be any new lows for Bitcoin and outlines three possible scenarios: breaking the resistance and moving higher, retesting the red trendline before going up, or ranging over Christmas and into the yearly close.
Hot Take: The Uncertain Future of BTC
The launch of spot Bitcoin ETFs poses both opportunities and risks for BTC. While they could bring mainstream adoption and investment from traditional asset managers, there is also the potential for the decline of Bitcoin transactions and the concentration of BTC holdings in the hands of a few firms. The future of Bitcoin remains uncertain, with its fate hinging on how successful these ETFs become and whether they lead to the demise of the pioneer cryptocurrency.
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