2024-01-16 14:42:00
Crypto is on the decline (shutterstock photo) Last Thursday, ten basket funds of investment giants such as Blackrock and Fidelity began trading on the currency that leads the cryptocurrency market Bitcoin, but precisely after the Bitcoin currency surged to more than 49 thousand dollars, Bitcoin began to collapse, despite this the crypto experts Optimists in Israel. Yuval Roash, CEO and founder of the company Bits of Gold: “The global crypto market is very excited for the ETF that will cause major and major financial companies to enter the Bitcoin world.”
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“The entry of the ETF into the Bitcoin market is not the entry of another financial instrument. This is the tip of the iceberg of a long-standing struggle. The SEC, the US Securities and Exchange Commission, has consistently opposed the entry of a Bitcoin ETF into the field, arguing that the market is not yet ready for it, and that was it. Only the court forced them to move forward and allow this. The potential here lies in the accessibility that the institutional bodies and consumers receive. Although the possibility of accessing Bitcoin today is at its peak, it is still quite limited to a relatively small segment of the population compared to the potential of the American mainstream.”
“Therefore, even if a fraction of the population that is currently inaccessible to holding the currency holds it through simpler financial instruments such as ETFs, this will have a dramatic effect on the market, through an increase in demand for the currency, and therefore also on its price. Also the dominance of Bitcoin against other currencies that stands today At about 54%, a record since 2021, it is expected to increase to over 60% since the ETF is limited only to Bitcoin. The other currencies are also expected to benefit from the rise of Bitcoin, but probably with a certain delay and these will be traded on traditional crypto exchanges, and financial service providers.”
“It should be noted that in recent months it seems that the market has already begun to price the entry of the ETF, therefore it is not clear whether its launch will lead to an immediate increase in the price of Bitcoin. Evidence of such pricing here at Bits of Gold, for example, we see in recent months a growing demand of tens of percent among hundreds The thousands of our customers and the Israeli public in general to the bitcoin currency, but as expected also to other currencies such as Litecoin, Ethereum and USDC which enables trading in additional currencies.”
“The ETF on Bitcoin will increase the exposure of the Bitcoin world to more audiences, but it should be remembered that it is limited, so at the same time we assume that more audiences will be exposed to the entire industry and will want to purchase the Bitcoin coins themselves, as well as other currencies like ETHEREUM, to do staking (a kind of interest on the currency), and enjoy what this market has to offer.”
“As someone who has seen the field develop for over 11 years, what is clear is that the world has already realized that the field of digital currencies is not a passing trend, the technology and the regulation itself are developing and the field is already having an impact on other areas of our lives. For example: PayPal launched its own currency this year, linked to the American dollar ; the MAX credit card company issued in collaboration with Bits of Gold a credit card that accumulates bitcoin, the president of Argentina announced bitcoin as an official means of payment in the country, and we predict that in 2024, alongside the demand for the currency, we will see more and more uses and possibilities that will expand the crypto world.”
Naa Mashiach, CEO of the Israeli Bitcoin Association explains: “The approval of a Bitcoin-tracking ETF indicates the great trust that the institutional bodies place in Bitcoin and its technology. With the growing interest in a security, the price of its base asset – the Bitcoin – may also increase, since there is an obligation to hold a certain amount of coins against that ETF.
This is great news for the world of crypto, but especially for those – private individuals or companies, who until today avoided entering the field due to fear or lack of knowledge. At the same time, the growth potential of the field has increased significantly with the massive entry of large entities that are limited to buying securities traded on the stock exchange, and from now on will be able to be exposed to the digital currency market as well. This is a significant step as part of the development of Bitcoin, which has a general and long-term trend of increasing value, the joining of new players in the field – for example, the giants BlackRock and Fidelity, which hold a large majority of Americans’ pensions and investments, increasing trust in the technology and understanding of its unique value.
You have to remember that the price of Bitcoin is volatile in the short term, and when you buy an imitation security you may be able to enjoy the price volatility, but holding Bitcoin in your own wallet while maintaining the safety rules gives you the advantages of holding the currency. The Bitcoin Association recommends that anyone interested in the field learn and understand the risks and opportunities before you start investing.”
Nir Hirshman, CEO of the Blockchain and Web 3 Crypto Companies Forum: “The great importance in operating the ETF is in making Bitcoin and Ethereum accessible to the masses. Bitcoin has established itself in the 14 years since its founding as a real and meaningful convention that everyone who takes part in the world of digital currencies owns in one way or another. However, one of the significant problems is the maintenance itself. Despite the many technological developments, the most advanced of which are produced here in Israel, it is still not easy for the end user to hold and secure his coins.”
“Etf creates a solution to the matter. Just as many of those who buy gold do not want to receive the metal bars at home, so many bitcoin buyers do not want to take on the burden of maintaining and securing the coins and prefer that significant entities such as the ETF giant Blackrock and others do it for them.”
“In the case of Bitcoin, since the supply growth rate is constant and it goes down, the impact on demand is critical, and if the demand goes up, you can try and understand what will happen to the cost of the asset.”
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“When you listen to those leading the ETF issue, their discourse is that Bitcoin is a device for diversifying the holdings portfolio – one that does not operate in perfect correlation with the stock market, and therefore there is a certain benefit to a limited holding in the public’s stock portfolio or pension. And here, even if it is a matter of a few percentages, This is a tectonic change for the field.”
“It is important to note that an increase in the rates will lead to the continued development of the technology and investment in additional companies that will make digital currencies easier, more convenient and simpler to use.”
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