Has the US government’s view of Bitcoin turned into an open and hopeful “safe haven asset” for the public to buy? Forbes’ commentary hits the nail on the head with the extreme possible truth.
(Foreground: GBTC fund outflows have declined for three consecutive days! JPMorgan analyst: Bitcoin’s decline may come to a halt.)
(Background: 8 indicators assessing the health of Bitcoin: Imperfect but good enough for an A-)
The financial world changes at the speed of light. Although it has been less than a month since the SEC approved the listing of Bitcoin spot ETFs, market investors have gradually become accustomed to this fact. While Grayscale GBTC is selling off in large quantities, Wall Street institutions are moving in the same direction: buying Bitcoin.
In fact, investors may not realize the profound impact of Bitcoin entering the ETF. Avik Roy, the official policy editor of Forbes magazine, specifically wrote a commentary, pointing out that the US government is using Bitcoin to create a “new money pit,” increasing the risk resistance of investment choices for the public. Another point is that it will be very difficult for future US administrations to ban encrypted assets. Bitcoin has become a new force in currency operations.
Further reading: Grayscale is likely to be acquired! Analyst: GBTC is the best springboard for traditional finance to enter Bitcoin.
Forbes commentary: The SEC knows what they’ve done.
Avik Roy pointed out that the Securities and Exchange Commission (SEC) understands the position of Bitcoin in monetary economics. When the government needs political attractiveness, it may spend more budget, borrow more foreign debt, and print more money without increasing taxes, ultimately leading to inflation. Theoretically, compared to modern fiat currencies with limited supply, Bitcoin can become a more reliable long-term store of value.
Another point is that the SEC has given up on controlling, prohibiting, or abolishing Bitcoin, as well as setting up multiple barriers that make it extremely difficult for the public to buy Bitcoin. This is why the SEC is so entangled before deciding to open Bitcoin spot ETFs. Allowing Bitcoin to enter the financial market through ETFs can immediately enable a large number of investors to buy Bitcoin. They may be people who have never used cryptocurrency exchanges, let alone use private key wallets to store Bitcoin.
Approving Bitcoin ETFs will greatly increase investors’ interest in cryptocurrency assets and become an unstoppable and snowball-like general knowledge. Currently, over $25 billion worth of Bitcoin exists in institutions in the form of funds. Even for financial giants like BlackRock, this amount is still significant.
Further reading: Who has more Bitcoin, the US or China? BTC reserves exposed.
With the weakening of the US dollar, Bitcoin becomes the solution. The US’s fiscal problems, including the public’s healthcare expenditure exceeding control, have become the soft underbelly of the US dollar. The conclusion of Forbes’ commentary is startling, stating that before the worst-case scenario arrives, US citizens can buy Bitcoin as a hedge against the crisis caused by the soaring federal government debt. The approval of Bitcoin spot ETFs confirms that this hedge will continue for a “long time.”
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