SEC will release soon! Here comes the bitcoin index fund, 50000 dollars or just a stepping stone

The price of bitcoin has risen more than 80% in less than two months since this year. On February 16, it rose above $50000 for the first time. So far, bitcoin has quoted nearly $52000. Mike Novogratz, chief executive of Galaxy digital, said that the US Securities and Exchange Commission (SEC) would give bitcoin exchange traded funds a green light under the leadership of new chairman Gary Gensler, and predicted that the SEC would approve BTC ETF in the next 12 months. “Once BTC ETF is approved, it will further accelerate the growth of BTC.” KOL tingjun, founder of tingjun blockchain and well-known cryptocurrency, said to time finance on February 18. At present, many enterprises and institutions are blocked out of the bitcoin world because of their compliance problems. If they want to buy bitcoin, they must solve a series of problems such as accounting, auditing, etc., and the processing of compliance is very complicated. “Once BTC ETF is passed, enterprises can easily purchase BTC ETF in the secondary market to make profits. This is tantamount to removing the final obstacle for enterprises and institutions to enter the bitcoin market. This is undoubtedly a huge booster of bitcoin price and a major benefit of bitcoin.” Ting Jun to the era of financial analysis. The SEC is expected to approve BTC ETF. “Once BTC ETF is passed, it will undoubtedly be a significant positive for the cryptocurrency market.” KOL tingjun, founder of tingjun blockchain and well-known cryptocurrency, said to time finance on February 18. In fact, in the past few years, there has been a strong demand for bitcoin ETFs in the market. As early as 2017, Cameron winklevos and Taylor winklevos, founders of the cryptocurrency exchange Gemini, submitted applications for bitcoin exchange traded funds. Since then, organizations including WisdomTree, Wilshire Phoenix, direxion, ProShares and graniteshares have also submitted applications. However, these applications were rejected by the securities and Exchange Commission. “Previously, ETFs related to BTC were rejected by SEC for many times because the price of BTC at that time was low, the market value was small, and the price fluctuation was large. The BTC market was easy to be manipulated by the whale.” Ting Jun said. Today, that is changing. Since last year, more and more well-known enterprises and investment institutions, including PayPal, NVIDIA, Tesla, IBM, visa, MasterCard and many other companies, as well as many family trusts, have invested heavily in bitcoin. BlackRock, the world’s largest asset manager, is likely to be a major investment bank that has moved faster. BlackRock listed bitcoin futures as a potential investment in its two funds in January, according to BlackRock’s filings with the securities and Exchange Commission. By the end of last year, BlackRock had $8.86 trillion in assets under management. As the value of bitcoin is mined and discovered by more investors and institutions, the price of bitcoin has been rising all the way and breaking through the record high. “This has greatly increased the market value of bitcoin, reduced the volatility of bitcoin, and diversified market participants. All of these have made the bitcoin market less likely to be manipulated, and BTC ETF will be more easily approved by the sec.” Ting Jun to the era of financial analysis. “There is little possibility that the SEC will approve bitcoin ETF in the short term. Because it takes a long discussion and changes to the existing exchange regulatory framework to approve bitcoin ETFs, which is a big challenge for regulators. ” Noah Wang, co-founder of top network, told Time Finance on February 18. Noah Wang believes that the launch of bitcoin ETF will attract a large number of investors and investment institutions in traditional fields to further expand the demand for bitcoin. “Bitcoin ETF is more secure, low transaction cost, simple investor arbitrage, lower investment risk and investment threshold. It is a very convenient investment channel for both retail investors and institutions.” At present, in the U.S. securities market, retail investors can participate in bitcoin trading by investing in products such as gray trust funds, but the cost of this trust is very high, and it needs to charge 2% management fee. In addition, in the secondary market transactions, the trust shares can not be accurately synchronized with the current price of special currency, and there is a very high transaction premium. In contrast, if bitcoin is issued in the form of ETF, it can not only reduce the cost, but also can be traded in more trading places, which is conducive to ordinary investors holding bitcoin. Since February, two bitcoin exchange traded funds in North America have been approved by regulators. On Tuesday, evolve funds Group Inc, a Canadian fund management company, announced that its BTC ETF has been approved by the Ontario Securities Commission (OSC). Previously, the BTC ETF launched by purpose investments Inc. was approved to be the first physical settlement ETF in North America. Bitcoin prices have reached record highs, and in less than two months this year, bitcoin prices have risen by more than 80%. On February 16, it rose above $50000 for the first time. So far, bitcoin has quoted nearly $52000. “The current bitcoin price has exceeded 50000, which may be too expensive for ordinary retail investors, but for more institutions that have not yet entered the market, their concerns are the same as those of the sec. The price fluctuation caused by the huge amount of funds entering a small pool is too large.” Ting Jun said to the times finance and economics. Ting Jun believes that the current price of bitcoin is still too cheap for institutions. If bitcoin wants to attract more institutions and more capital inflow, it must first break through a higher price critical point and total market value, so as to accommodate more funds. “Once this price critical point is broken, it will attract more institutions and funds into the market, forming a situation of accelerating the rise.” “The impact of ETF adoption on bitcoin prices this year is not decisive. The long-term reason for the rise of crypto assets, including bitcoin, is that Nakamoto’s crypto consensus mechanism, namely asymmetric cipher and distributed consensus, has created a new economic organization model and brought about great economic efficiency improvement in various fields of the global economy. ” Liu Changyong, founder of Zhimi University, told Time Finance on February 18. Liu Changyong believes that gray position, musk order and ETF are helpful to the start and promotion of the bull market, but they can only be regarded as the short-term favorable factors in the bull market, and do not affect the long-term trend and bull bear cycle. “The medium-term reason for this round of soaring prices of crypto assets is the bull bear cycle of the crypto economy. The crypto economy is still in its early stage, and the value of related assets mainly comes from expectations. Therefore, the bull bear cycle is very obvious and the volatility is very large. ” The efficiency of bitcoin, erc20 and Dex in 2013, 2017 and 2021 respectively increased. Among them, after the end of the bull market in 2017, 2018-2019 has experienced a long bear market, and the overall value has been underestimated. Due to the support of long-term innovation dividend, the recovery in 2020 and the bull market in 2021 are both natural cycle components. Liu Changyong believes that there will be more fields in the future to show the great power of password consensus. “That is to say, there will still be several big bull markets after this bull market, until the global economy is upgraded from the Internet economy to the crypto economy based on password consensus.” If the bull market is divided into three stages, i.e. early, middle and late, Liu Changyong believes that the bull market is now in the stage of transition from the early stage to the middle stage. “More new investors, especially large companies and institutional investors, and even countries, are still in the stage of moving or testing water. The main part of this bull market is after the Spring Festival to the end of the year. ” On the whole, the position of BDTC is still at a very controversial stage among the mainstream financial institutions. Recently, UBS wealth, one of the world’s largest asset managers, has argued that the value of cryptocurrencies is likely to return to zero due to competition from regulatory measures and better designed versions. “In our view, nothing can prevent the price of cryptocurrency from going back to zero when a better version comes online or if changes in regulatory policies will suppress market sentiment.” Noah Wang believes that with more and more traditional institutions entering the cryptocurrency market, there will be serious differentiation in the cryptocurrency market. “Mainstream currency, value currency and some new concepts of currency will be more and more popular. Currencies with no value will be abandoned one day, and funds will be more and more concentrated in these currencies.”

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