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Bitcoin's upward momentum continues. On February 20, the price of Bitcoin exceeded $56,000, and its total market value has exceeded the $1 trillion mark, surpassing Tencent. In the list of the world's top market capitalization companies currently published, Bitcoin ranks sixth, and Google ranks fifth with a market value of about $1.4 trillion. Since February this year, the price of Bitcoin has risen by more than 60%. At the same time, the continued rise in Bitcoin prices has deterred many retail investors, so Bitcoin ETFs that are convenient for retail investors to buy have been highly praised. The China Times reporter noted that the performance of BTCC, the first Bitcoin ETF product in North America, on its first day of listing was very impressive, with a trading volume of US$165 million. Exchange data showed that BTCC's trading volume on the first day reached 9.65 million shares, ranking among the top ten trading volumes of all products on the Toronto Stock Exchange that day.
"The Bitcoin market has become increasingly mature in recent years, and is increasingly tending towards the trend of confirming its financial asset attributes. The entry of more and more financial institutions and investment institutions also reflects the institutions' recognition of the overall value of BTC. The launch of Bitcoin ETF products will have a positive incentive effect on the price of Bitcoin in the long run, because the entry of institutions is actually the elimination of the original risks and uncertainties." Wang Juan, Secretary-General of the Digital Economy Committee of the Beijing Computer Society and member of the OECD Blockchain Policy Expert Committee, told a reporter from the China Times.
A US Bitcoin ETF is not far away
On February 18, BTCC was officially launched on the Toronto Stock Exchange as the first Bitcoin ETF in North America. The ETF product was issued by Canadian asset management company Purpose Investments. Purpose Investments said in a statement that BTCC can directly invest in physical or digital Bitcoin and is the first true Bitcoin ETF.
A reporter from China Times learned that some well-known domestic investors have announced their purchase of Bitcoin ETFs. Dan Bin, chairman of Oriental Harbor Investment Management Co., Ltd. and author of The Rose of Time, said on Weibo, "I have purchased 1% of the Bitcoin ETF fund. Although it is a bit late, I will do it once I figure it out! I hope to maintain my curiosity about new things!"
Dan Bin also said, "As Tesla allows Bitcoin as a payment 'currency', its value may be increased. The total number of Bitcoins in the world is 21 million, and 15.85 million have been mined as of July 13, 2020. If the number of long-term holders increases, or companies like Tesla continue to join, it is very likely to reach the $400,000 mentioned by ARK's 'Bull Market Queen'..."
Following BTCC, on February 19, Evolve Funds Group Inc. announced that the Bitcoin ETF would be traded on the Toronto Stock Exchange, offering unhedged shares denominated in Canadian dollars (trading code: EBIT) and unhedged shares denominated in US dollars (trading code: EBIT.U).
Previously, the attitude of the US financial regulatory authorities towards Bitcoin ETFs has always attracted attention in the industry. Although the US financial regulatory authorities have not yet approved the Bitcoin ETF applications of institutions such as VanEck Associates Corp and Bitwise Asset Management, the industry generally believes that the US domestic Bitcoin ETF is imminent.
"The issuance of a Bitcoin ETF in the United States is a matter of time. However, at present, the entire digital currency trading platform still uses USDT and other stablecoins pegged to the US dollar as intermediaries for communication and circulation. Therefore, it is worth looking forward to whether the Bitcoin ETF or the Ethereum ETF will be issued first in the United States. Because Ethereum itself has many application scenarios, but the handling fee is very high, Ethereum is more suitable for ETF products. But no matter which ETF is issued first, it is considered from the convenience and application scenarios of the US dollar standard." Wang Juan said.
On February 18, Galaxy Digital founder Mike Novogratz said that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin exchange-traded fund (ETF) under the leadership of SEC chairman candidate Gary Gensler. Novogratz believes that current investment tools in the crypto space, such as the Grayscale Bitcoin Trust (GBTC), give retail investors unfair treatment, and Gensler is unlikely to keep the status quo unchanged.
In this regard, Gu Yanxi, founder of Liyan Consulting Company, also told the reporter of China Times that the application for Bitcoin ETF is a question that the new chairman of the US SEC needs to answer immediately. At present, Bitcoin is very popular in the US market as a trading product. Institutional investors and retail trading users in the United States have already started to buy Bitcoin, but due to different regulatory restrictions and transaction convenience, different types of users use different methods to buy Bitcoin. Bitcoin ETF is just to provide one more option. Whether to set up an ETF or not, the Bitcoin market will operate the same way.
Gu Yanxi further stated that in view of the global trading characteristics of Bitcoin, in order to effectively regulate Bitcoin, the US financial regulator needs to cooperate with other financial regulators to formulate corresponding regulatory policies. This is also the consensus of major financial regulators around the world.
The crypto market continues to be hot, and you need to be cautious when entering the market .<br />In addition to Bitcoin, other cryptocurrencies are also bullish. At noon on February 20, ETH broke through $2,000, setting a new record high. ETH broke the 1,000 yuan mark on January 4, 2021. As of now, the price of Ethereum has doubled, exceeding the increase in Bitcoin.
It is worth noting that data from multiple sources show that Ethereum is gradually surpassing Bitcoin in some aspects. On January 20, data released by Messari Twitter showed that Ethereum surpassed Bitcoin to become the largest settlement layer in the crypto field, with a settlement volume exceeding $1 trillion in 2020. On January 19, data released by Messari showed that Ethereum's daily transaction volume exceeded $12 billion, and Ethereum's daily transaction volume has been higher than Bitcoin since the end of June.
In this regard, Wang Juan told the reporter of China Times that Ethereum and Bitcoin are two parts of an ecosystem. In rounds of changes, Bitcoin's advantages have always been obvious, while Ethereum focuses more on the application side, focusing on the combination with the market, smart contracts and application scenarios. Therefore, the two have established a good ecosystem in the expression mode of "digital gold" and "digital silver". From a functional perspective, Ethereum and Bitcoin do not overlap. In terms of the breadth of application scenarios, Ethereum does have more opportunities, but Bitcoin's position as digital gold is currently unshakable.
While the crypto market is hot, some people are bearish. Gabriel Makhlouf, a member of the European Central Bank's Governing Council, warned: "Once regulatory measures are tightened, coupled with the competition brought about by the launch of central bank digital currencies (CBDCs) in many countries, the value of existing cryptocurrencies is likely to return to zero. Investors holding cryptocurrencies will therefore lose their assets."
Nouriel Roubini, a well-known American economist known as "Dr. Doom," also said in an interview with the Financial Times on February 10: "Bitcoin is not a hedge against risks. Tesla founder Elon Musk may be buying Bitcoin, but that doesn't mean everyone should follow suit. Given its huge environmental costs, the fundamental value of Bitcoin is negative."
In this regard, Wang Juan emphasized to the reporter of China Times that it is not difficult to create a bull market from the perspective of indicators, but the so-called bull market does not represent the prosperity of the entire market. In the current crypto market, for investors, especially for some risk-loving investors, in addition to Bitcoin, they will also find some emerging products similar to "new stocks". Previously, these products were called "air coins" in the industry. These products may make many people profit quickly, but in fact, the risks of this type of product in the digital currency market are far greater than those of mature cryptocurrencies such as Bitcoin. This is something that ordinary investors need to pay special attention to.
Wang Lin, consultant of the Blockchain Joint Development Organization, also told the China Times reporter that the risk of the cryptocurrency market is far greater than that of the traditional stock market. It is more suitable for investors with high risk tolerance. For ordinary investors, do not blindly follow the trend and enter the market. (China Times) |
