Bitwise CEO: The next bull run is coming faster than you think.
The crypto industry has had an impressive year, not only with the arrival of new investors and increasing adoption, but also with the introduction of a wide range of investment products enthusiasts.
Even when the ProShares Bitcoin Strategy ETF (BITO) posted record numbers when it was launched in October, a huge segment of investors was disappointed that there were only ETFs based on BTC futures contracts .. licensed by the Securities and Exchange Commission (SEC) . .
The SEC’s ongoing rejection of a spot BTC ETF has led many asset managers to turn to neighboring Canada or even withdraw their applications altogether.
In a recent podcast, crypto asset manager Bitwise CEO Matthew Hougan said believe While the introduction of BITO is important to the crypto ecosystem as it signals massive growth and capital inflows, it may not be the best product for investors.
“This is an imperfect product, nobody loves it. Great if you trade bitcoin for a week, not so good if you hold it for a year … it’s not a niche product … it was expected to be the product that would allow it to pour in the institutional wall of money to let But reality is gradually showing that it is a wrong story. “
Interestingly, the Bitcoin futures ETF, which invests in contracts that will speculate on the price of Bitcoin in the future, actually performs worse than the spot market, which makes everyone suspicious.
One of the limitations of futures-based ETFs is their lack of appeal to financial advisors, who control most of America’s wealth and “just don’t buy cryptocurrencies through the app.”
Hougan also noted that while a Bitcoin ETF would be a more viable option, “the futures product cannot be described as an optimal exposure to the asset.”
However, some government responses to investment products can be seen in the past, with Congress expressing distrust of ETFs when they were first introduced as an investment product in 1993.
This is a lesson for the current crypto market. Hougan says:
“The world is not necessarily skeptical about this. You can be successful through constant lobbying and analysis towards a future where it will be accepted as normal. “
The recent hearings in Congress, which were attended by several crypto CEOs, as well as the government’s increased interest in the industry, can be seen as a positive move. A comprehensive bill on cryptocurrencies is likely to be proposed by Congressman Lummis early next year.
“I think the next bull market in crypto will be driven by positive developments in regulation and I think it will come sooner than people expect.”
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