The Spot Bitcoin ETFs are approved, and the crypto ecosystem's new era has just begun with this important day. Even though crypto represents the freedom of speech, financial independence, and true ownership of your budget and data, we also need to have strong ties to thrive in our young and potentially high ecosystem.
The " Future " ETFs of Bitcoin have not yielded any specific benefits and the only visible effect was that their approval resulted in a long bear market with that drop. This time might be very different because spot Bitcoin needs to be bought from the market and we can demand 1 : 1 Bitcoin held in a cold wallet for Bitcoin Spot ETF units issued.
When it comes to yesterday鈥檚 drama, the SEC played cat and mouse games with the whole ecosystem.
First of all, let's memorize what certain cryptocurrencies represent and have role in.
Bitcoin is the leading crypto that is the " face " of crypto ecosystem. When Bitcoin starts to go up, it triggers the increase in the greed not just for our crypto ecosystem, but for NASDAQ, S&P, and developed countries' exchanges as well.
Similar to the vision of Gold, which is attributed as the power against the USD, Bitcoin has a potential to energize all markets with a growing appetite.
If you look at the approval drama and the consequences, Bitcoin has not done any positive actions, even, it has lost value since the spot ETFs got approved. This might look pointless but actually there is a series of rationale behind that circumstance.
First of all, Ethereum, as the leading altcoins, can motivate the investors to move from Bitcoin and stablecoins to " risky " altcoins. So, if Ethereum walks, altcoins start to run 馃弮
The SEC was able to make investors fed up with ETFs spoiled announcement case and they did not carry the 10x to 100x long positions in that amazing news. Rather, ETH was allowed to move and scaffold altcoins with it as a representation of Bitcoin Spot ETFs positive effects on the market.
This might be one of the most bullish things that happened to crypto world. Guess what, it got hammered with all these X account hack (!) announcements, sell the news stories, so on and so forth.
They believe that Bitcoin is wild, potentially harmful and this market needs to be regulated strictly.
I'm sure you remember that word choice: "tame" for Bitcoin.
Yes, the ETFs will make Bitcoin accessible for millions of people but that event also has its inherited risks. At that point, we will sit and watch the way Bitcoin will be used as a vehicle to energize all markets or control the risk appetite with these ETFs.
It might be a historical time that we are observing. If we focus on the effects of the ETFs on the price of Bitcoin, $250,000 per BTC does not sound unrealistic in the case that the interest rates start to go down and the quantitative tightening is ceased.
However, apart from the price actions, Bitcoin ETFs have granted another vehicle in the real world.
How do you feel about the Bitcoin Spot ETFs?
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