The broader digital currency ecosystem is anticipating the U.S. Securities and Exchange Commission’s (SEC) response on spot Bitcoin exchange-traded fund (ETF) products being pursued by major asset managers such as BlackRock, Grayscale Investments and Ark Invest. Commenting on the market outlook, chief economist Alessandro Ottaviani shared Five key reasons why Bitcoin may take a different turn after ETF approval.
The broader digital currency ecosystem is anticipating the U.S. Securities and Exchange Commission’s (SEC) response on spot Bitcoin exchange-traded fund (ETF) products being pursued by major asset managers such as BlackRock, Grayscale Investments and Ark Invest. Commenting on the market outlook, chief economist Alessandro Ottaviani shared Five key reasons why Bitcoin may take a different turn after ETF approval.
Bitcoin on track to rewrite history
Many experts have postulated what could happen to Bitcoin if the market regulator decided to approve the mainstream asset class. Sharing his opinion, Ottaviani said he does not see the possible approval as an event to “sell the news,” as many critics have posited.
First of all, he compared the age of Bitcoin with that of gold, which is already about 5,000 years old. He believes that the fact that most people are still skeptical about including Bitcoin in their portfolio can give the currency a big boost when a conducive environment exists.
Secondly, Ottaviani mentioned the fact that the Bitcoin spot ETF has around 12 applicants that are now competing with each other for the highest volume as a major bullish event that can impact the growth of the coin. Third, the rapid movement of information as a result of the emergence of smartphones may also tip the balance to give a mega takeoff to the likely launch of the Bitcoin ETF.
The dilutive impact of increased gold mining over time was also mentioned when the economist recalled the fixed supply of Bitcoin which remains at 21 million. With this, greater inflow of institutional funds may not match the limited supply, driving up the price.
Bitcoin Max Effect
The latest indicator shared by the economist depends on the role of Bitcoin maxis, people who HODL their BTC with no plans to sell it in the short term.
People in this category include Michael Saylor, whose company MicroStrategy owns a large chunk of Bitcoin after steady accumulations over the past few years. In all, Ottaviani believes the Bitcoin spot ETF could push the stock market to rewrite more than 500 years of history.