The US Securities and Exchange Commission (SEC) is currently reviewing the approval of a Bitcoin futures ETF, which may be approved before January 10. Industry experts predict that this could lead to more companies offering Bitcoin investment options in their 401(k) retirement plans, thereby transforming Bitcoin into a mainstream investment option. However, BitMEX founder Arthur Hayes believes that if the Bitcoin futures ETF is too successful, it could completely destroy Bitcoin.
Title: Bitcoin Spot ETF Approval Expected in January, Leading to More Bitcoin Investments in 401(k) Retirement Plans
The US Securities and Exchange Commission (SEC) is currently reviewing the potential approval of a Bitcoin spot ETF. The SEC recently requested that issuers submit final changes to their S-1 applications by December 29, increasing expectations for the potential approval of a Bitcoin spot ETF before January 10.
The potential approval has sparked discussions within the industry on whether it will attract traditional financial investors. According to CNBC, industry experts speculate that the introduction of a spot ETF may lead to more companies offering Bitcoin investment options in their 401(k) retirement plans, transforming Bitcoin from a high-risk asset to a mainstream investment option.
Bitcoin IRA Chief Revenue Officer Chris Kline expressed optimism, stating that Bitcoin IRA allows retirement savers to invest in over 60 cryptocurrencies within their retirement accounts. Currently, retirement savers in the United States have limited options for directly investing in Bitcoin and typically rely on providers such as Bitcoin IRA, BitIRA, and iTrustCapital.
Industry experts predict that once the Bitcoin spot ETF is approved, more providers will join, offering retirement savers more options for investing in this asset. Steven T. Larsen, founder of Columbia Advisory Partners and Defi Steward, stated:
“Overall, industry experts believe that the potential approval of a Bitcoin spot ETF signifies an important step towards mainstream acceptance of cryptocurrencies in the traditional financial system, especially in the field of retirement planning. But is this a good thing for Bitcoin?”
BitMEX founder Arthur Hayes recently expressed serious concerns about the potential impact of a Bitcoin spot ETF. He pointed out that the value of Bitcoin lies in its liquidity, meaning its ability to be transferred. He warned that if the Bitcoin spot ETF is too successful, it could completely destroy Bitcoin.
Hayes explained that a Bitcoin spot ETF would store Bitcoin in a vault, meaning that if the ETF issuer ends up holding all the Bitcoin and investors only purchase related derivatives instead of directly holding Bitcoin, the actual trading volume on the Bitcoin network would significantly decrease. This would lead to a reduction in transaction fees, resulting in miners losing the economic incentive to verify transactions.
In summary, Hayes believes that if Bitcoin becomes another financial asset controlled by nations, it will “die” due to lack of use. Interestingly, he further predicted that once Bitcoin loses its original mission, there may be a new cryptocurrency network that replaces Bitcoin’s position and expands on Satoshi Nakamoto’s original vision of peer-to-peer electronic cash.
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– Will Hong Kong Become Asia’s First “Cryptocurrency ETF”? What Are the Regulatory Requirements for Spot ETF Approval?