Has the US government’s view on Bitcoin turned into an open and hopeful “safe haven” for the public to purchase? Forbes’ commentary points directly at the highly possible truth.
(Foreword:
GBTC funds have been declining for three consecutive days! JPMorgan analyst: Bitcoin’s decline may stop)
(Background:
8 indicators evaluating Bitcoin’s health: imperfect but “sufficiently good 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 ETF, market investors have gradually become accustomed to this fact. While Grayscale’s GBTC has sold a large amount, 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,” which increases the risk resistance of investment choices for the public. Another point is that it will be very difficult for future US administrations to ban cryptocurrency assets. Bitcoin has become a new force in currency operations.
Further reading:
Grayscale is likely to be acquired! Analyst: GBTC is the best platform for traditional finance to enter Bitcoin
Forbes commentary: SEC knows what they have done
Avik Roy pointed out that the US Securities and Exchange Commission understands Bitcoin’s position in monetary economics. When the government needs political attractiveness, it may spend more budget without raising taxes, borrow more foreign debts, and print more money, ultimately causing inflation. Theoretically, compared to modern fiat currencies with limited supply, Bitcoin can become a more reliable long-term store of value.
On the other hand, the SEC has given up control, prohibition, and abolition of Bitcoin, as well as setting up various obstacles that make it extremely difficult for the public to purchase Bitcoin. This is why the SEC is so entangled in deciding to open Bitcoin spot ETF. By allowing Bitcoin to enter the financial market in the form of an ETF, a large number of investors can immediately buy Bitcoin, many of whom may have never used a cryptocurrency exchange, let alone saved Bitcoin in their private key wallets.
Approving a Bitcoin ETF will greatly increase investors’ interest in cryptocurrency assets and become an unstoppable, snowball-like common knowledge. Currently, over 25 billion US dollars worth of Bitcoin exists in institutions in the form of funds, and even for financial giants like BlackRock, this amount is still significant.
Further reading:
Who has more Bitcoin, the US or China? Exposing the BTC reserve amounts
The weakening of the US dollar makes Bitcoin a solution
The US’s fiscal problems, including the public’s healthcare spending being out of control, have become the weakness of the US dollar. The conclusion of Forbes’ commentary is striking: before the worst case scenario arrives, US citizens can purchase Bitcoin as a hedge to deal with the crisis caused by the skyrocketing federal government debt. The approval of the Bitcoin spot ETF confirms that this hedge will continue for a “very long time.”
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