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Why Crypto Market Is Down Today: Global Reasons

Why Crypto Market Is Down Today: Global Reasons

June Katz 6 min read
The bitcoin exchange rate has experienced a lot of falls in recent years, but in the end, it has recovered every time and reached new heights. In the last six months, almost all cryptocurrencies have significantly dropped in price. At the end of last month, after a prolonged fall, the first cryptocurrency began to show some positive dynamics, gaining a foothold at $ 32 thousand. Against the background of the rising inflation rate in the United States (almost 9% per year), bitcoin rapidly flew down and reached $ 27 thousand. Then analysts said that with an increase in inflation, the BTC rate would inevitably fall. On Monday, June 13, the bitcoin exchange rate fell to a price of $ 25 thousand, and on June 19, bitcoin collapsed to $18,707 (according to the Binance exchange). The first cryptocurrency pulled other coins along with it. Ethereum has fallen in price and now costs about $ 1.1 thousand, Solana has lost as much as 18.2% in a week, and the exchange rate has dropped to $ 37 (at the time of 06/21/12) Reasons The collapse of the cryptocurrency market will not surprise anyone. Even though the cost of bitcoin and Ethereum has increased dramatically over the past decade, fluctuations in this market have become familiar. Among the reasons for the fall of the cryptocurrency, experts name three — of which Bloomberg considers inflation statistics in the United States to be the main reason: in June, the US Federal Bureau of Statistics reported that the main consumer price index (CPI) increased by 8.6%. Inflation excluding food products increased by 6%. This is a record since 1981, and the statistics turned out to be worse than analysts' expectations, which assumed an increase of 8.3% for the CPI and 5.9% for core inflation. The second reason is the tightening of monetary policy in different countries. First of all, the US Federal Reserve, which in May raised the base rate (according to which the Central Bank issues loans to commercial banks) by 50 basis points, to 0.75-1%. This is the strongest increase since 2000. Because of this, people prefer to invest in assets less risky than cryptocurrency. The cryptocurrency market is also affected by the collapse of the TerraUSD (UST) stablecoin and related proceedings, which undermined investors' faith in such projects, Bloomberg writes. After it lost its binding to the US dollar, the Luna cryptocurrency used for its release collapsed by 76.4%. Luna Foundation Guard, which is behind TerraUSD, spent $2.9 billion in bitcoins to protect the binding of the token to the dollar — almost all of its reserves. On June 10, Bloomberg, citing sources, reported that the US Securities and Exchange Commission had launched an investigation into Terraform Labs and its algorithmic stablecoin TerraUSD. The regulator will examine whether the platform violated the rules for protecting its investors. Shares of Crypto Companies Also Fell The negative dynamics of the cryptocurrency affected the shares of industry-related companies on the stock market. In particular, the value of Coinbase Global Inc. paper has dropped by 13% since the beginning of the year, Marathon Digital Holdings Inc. — by 24.4%, and Riot Blockchain Inc. — by 21.7%. After spending "hundreds of millions of dollars" on campaigns, sponsorship agreements, and advertising at the Super Bowl, most cryptocurrency firms have reduced marketing costs. This is reported by The Wall Street Journal.  Binance CEO Changpeng Zhao said that crypto winter is the right time to hire new employees and further develop the business. Activity in the sphere has been reduced by Crypto.com and Gemini Trust. The first, after spending $40 million in January, allocated $2.1 million in May for commercials on the eve of the Super Bowl. The second one spent $478,000 last month — eight times less than in November ($3.8 million). Terra Crash The Terra incident is undoubtedly one of the highest-profile events in the history of the crypto industry. So far, no DeFi project has reached such gigantic proportions before its collapse. In March 2021, Terra launched an application called Anchor, which offered profitable deposits, which forced people to buy Terra to then deposit it into their account and get a 20% profit. This attracted a lot of new investors. The dizzying growth of Terra USD (UST) and the popularity of algorithmic stable coins have been a crypto trend for a long time and inspired many developers to create similar projects and reserve crypto funds. However, everything changed in a matter of days: on Wednesday, May 11, Terra USD lost its peg to the US dollar — its price fell below $ 0.23. The LUNA cryptocurrency used to issue the stablecoin has fallen by more than 80%. Some market experts believe that the Terra incident, regardless of the outcome, will have serious consequences for the cryptocurrency market. Blogger Dennis Porter noted that regulators use the collapse of UST as the main argument in favor of total regulation of stablecoins and promotion of CBDC. US Treasury Secretary Janet Yellen said that the unbinding of Terra USD exposed the need to "create a regulatory framework for stablecoins aimed at minimizing volatility." According to experts, the main reason for the "death" of LUNA was the weakening of the binding of the UST stablecoin to the US dollar. It was TerraUSD (UST), according to the creators of Luna, that was supposed to become a "bridge" between tokens and fiat, but in practice, it turned into a disaster. The path to the rebirth of Terra, if at all possible, will be long and thorny. After all, the main problem lies not in the technical component or the mechanism of binding to fiat, but in restoring user trust. Mutual Influence of Markets Bitcoin is increasingly tied to the world market. And, accordingly, it becomes dependent on its fluctuations. The dynamics of bitcoin this year are almost identical to the fluctuations of the US Nasdaq Composite stock indexes, which are dominated by shares of technology companies. The indicator has dropped by 8.3% since the beginning of the year. Sentiment in traditional markets and cryptocurrency markets can mutually influence their dynamics, analysts at the International Monetary Fund (IMF) say. "A sharp decline in bitcoin prices may increase investors' flight from risk and lead to a reduction in investments in stock markets," experts write. Summary The exchange rate is based not only on promises but also on faith in these promises. The more faith the promisee has, the more stable the course. Recently, more and more analysts are predicting a collapse of Bitcoin almost to zero. According to Guggenheim Partners director Scott Meinerd, bitcoin will fall to $8 thousand, bitcoin critic Peter Schiff admits a rate of $10 thousand, and Galaxy Digital founder Mike Novogratz is confident that the "crypt" will fall further. However, such prophecies in no smaller quantities accompanied every protracted decline in the cryptocurrency market which each time regained its position. Against the background of the fall of cryptocurrencies, the founder of the world's largest crypto exchange Binance Changpeng Zhao has repeatedly said that digital money cannot be evaluated by its falls. He wrote: from a historical point of view, "if you bought bitcoin every time the headlines "bitcoin is dead" appear, you would have succeeded." Zhao backed up this statement with the fact that in 2011 bitcoin fell below $ 20, in 2015 - below $200, and in 2017 — below $ 2000. And in 2022, bitcoin fell below $ 20 thousand. Zhao does not doubt that the leading cryptocurrency will begin to rise in price at auction. But it is worth understanding: when exactly bitcoin or ether will go up, no one can predict now.
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How Big Is the 2022 Crypto Crash? A Historical Perspective

How Big Is the 2022 Crypto Crash? A Historical Perspective

Ruth Kise 5 min read
This year started with a significant decline in the cryptocurrency market, which did intensify because of the geopolitical situation. Since the fall of 2021, crypto has been passing through the bear market and this trend continues to this day. And over the past one and a half to two months the main cryptocurrency has collapsed in price by almost 60%. Are Crypto Market Crashes Really Bitcoin Crashes? The correlation between cryptocurrencies has always existed to various extent. Altcoins depend upon Bitcoin because of the formation of primary demand for digital currency around it. Almost half of all coin investments are in BTC. Large investment portfolios include Bitcoin as a core asset. All large exchanges hold the bulk of liquidity in Bitcoin, as the largest volumes of transactions occur in trading pairs with BTC. Although the dominance index has shown steady growth in altcoins investment since 2017, Bitcoin still holds 40% of the entire market. The closest competitor, Ethereum , is 2 times behind it. Thus, when Bitcoin collapsed from $48.2 thousand to $28.9 thousand, it dragged down all the altсoins. Ether is down 52% since January 2022 and now costs $1,800, Solana is down 74% to $45.87, Cardano is down over 64% and costs $0.4909. If you're a newbie, then you might feel like it's a complete collapse of cryptocurrency. And seemingly with a good reason, because such a sharp and long drop in prices was a long time ago. However, the market has already faced crashes more than once. So we will look at the most important cases of bitcoin drops: The Largest Bitcoin Drops to Date It should be mentioned that any drop in prices is associated with their growth, and vice versa: a kind of swing that leaves no investor indifferent. 1: The Rollercoaster of 2011 The very first shock caused an unexpected rise of Bitcoin from $1 to $30 in early 2011. However, this wave of growth was followed by a staggering drop in the asset price in June 2011. During the period from June 8 to 11, the price of BTC fell by almost 50%, reaching $14.65. Such a sharp jump is explained by the sudden increase in the hashrate to unprecedented values. Also, mentions in some mainstream media played their role. On June 19, 2011, the Mt.Gox exchange was hacked , bringing down the price of Bitcoin to $0.01. It affected the accounts of 60 thousand users totaling more than $8.7 million. One week later, trade on Mt.Gox recovered, and the fall in prices after the hack became the largest in the history of Bitcoin. 2: The New Heights of 2013 The next shattering experience awaited investors for two whole years. In 2013, the volatility of major cryptocurrencies set new records. BTC set a new historical high of $1,147. Against the background of general euphoria among crypto investors, the coin did not stay above $1000 for long - very soon a bear trend began, during which the BTC fell to $694. The next time the cryptocurrency was able to overcome resistance again at the level of a thousand dollars only in January 2017. 3: The Final Misadventure for Mt. Gox In February 2014, the Mt.Gox site was hacked again, this time 744 thousand bitcoins were stolen. It is an absolute record and the biggest hack in the trade to date. As a result of the hack, Mt.Gox filed for bankruptcy and closed, creating panic in the bitcoin market. From that time on, the first prolonged fall of Bitcoin began, which is commonly known as the "cryptocurrency winter." 4: The Time When Even Your Grandma Learned About Crypto The end of 2017 is remembered for euphoria due to the achievement of a new peak in the price of Bitcoin. True, in the same month, the value of the main digital asset began to fall rapidly - a week after the formation of the historical maximum on the line of $20.000, BTC dropped to $13.000. 5: The Comedown of 2018 The fall continued into 2018 and marked a new crypto winter. In January, the coin fell to $9,800. The lack of centralized regulation left the question of safety open. In the first nine months of 2018, $927 million worth of cryptocurrencies was stolen from platforms of different countries, according to a CipherTrace report. Also at the beginning of the year, phishing mobile applications of larger exchanges were distributed, which stole customer data.  Great interest in cryptocurrency and the ICO market has led to the emergence of many scam projects. It all ended with the biggest social networks - Facebook, Instagram, Google, Twitter, Snapchat, Baidu, Weibo - rolling out a ban on any ICO ad, no doubt a blow across the industry. So on the 14th of November, BTC cost $6,359, and already on November 25, the rate was $3,729. 6: The Great Expectations (vs Reality) Another memorable crypto drop took place in late 2019. The main topic in the community was legal issues, the struggle of the US Securities and Exchange Commission (SEC) with bitcoin-ETF, and hopes for the launch of the institutional bitcoin service Bakkt.  In September, Bakkt finally launched but did not attract much attention among institutional investors, triggering a drop from $10,036 to $6,657 in just a couple of months. To Sum Up High inflation in the US stock market and general global economic instability were naturally reflected in a decrease in risk interest among investors. In addition to the situational panic against the background of the fall of UST, the tightening of the monetary policy of the FRS and the end of the "bull" trend in the technology sector, which includes cryptocurrencies - the main current reasons for the fall of the market. The current market crash is not the largest in history, although due to large capitalization, absolute numbers are really large. The price of Bitcoin has been able to increase by several hundred to 60 thousand dollars, so you should not worry about short-term calendar cancellations.  On the other hand, there are some coins that have less correlation to BTC and it could be a fine new trend. For example, BNB with a well-built all-in-one ecosystem and Launchpad. BNB began to actively master one of the largest markets - the American one. As a result, the position of the currency will only strengthen, which makes it extremely promising for investment.  Clearly, the cryptocurrency will deal with all fluctuations - both minor changes during the day and severe monthly collapses.
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How to Buy And Trade Crypto (And Why)

How to Buy And Trade Crypto (And Why)

Ruth Kise 14 min read
The world’s recent events are causing more and more people to think about the safety of their savings. More and more of them choose to invest in cryptocurrency. Here, for example, your wallet belongs to you only, and no one can freeze your assets; on the other hand , the responsibility of the safety and all operations rests only with you. Therefore, you should first understand the following points. What You Need to Know Before Going into Crypto Getting acquainted with the world of cryptocurrencies is better to start with a choice of strategy. Investing or trading are the main ones. The first implies the acquisition of an asset and long storage. The second is short-term speculation. A trader makes many transactions with digital assets, trying to benefit in a short period. Strategy 1: Investments There are a few types of investments in crypto: Buy and hodl You can buy Bitcoin , Ether, or any other coin for fiat and wait for its rate to increase. If handled properly, such an investment will bring a big profit after a certain time. However, no one canceled the negative scenario for cryptocurrencies, and their value can fall sharply, up to a complete depreciation. Besides, such an investment method means investing not even for months, but for several years or more. Put in a trust This way, you invest in a trader who makes transactions on a cryptocurrency exchange and receives your interest. But still, there is a high risk of loss of invested funds because no trader is secure from damages. ICO You can invest in a cryptocurrency company and become its “stockholder”. The disadvantage of this method of crypto investing is the choice of a valid company as well. Strategy 2: Exchange Trading Trading cryptocurrency is an extremely risky craft. The price of altcoins is volatile, on a day it can fluctuate by 10-20%, sometimes by 50% or more. For this reason, it is better to try trading cryptocurrency from a training account first. The largest cryptocurrency exchanges, such as Binance, Coinbase, Huobi, OKEx, and others, allow users to open demo accounts for transactions without making a deposit. This will allow you to get acquainted with the market and the structure of the trading platform, and practice. Then you can deposit a small amount on the exchange. This will help the user understand his psychology: is he able to suffer losses and not make panic, erroneous transactions, control himself and decide with a cold head. In addition, it is necessary to study the theory, listen to lectures on this topic, take courses, and get acquainted with technical and fundamental analysis. All this will help not only to see in the charts the ups and downs of assets but also to predict them. Other Considerations: Fees Transaction fees are an integral part of most blockchain systems. They perform two important functions. They reward miners or validators, who help confirm transactions, and protect the network from spam attacks. Depending on the activity of the network, the transaction fee can be small or high. Its size is also derived from market conditions. Getting Ready to Take Part in the Crypto Market When you are ready with the strategy, ‌choose the best altcoins to buy. Today there are 2290 coins. Some of them are junk, but some can be very advanced. To make the right decision first you must make an analysis of it validity. It is best to start with Coinmarketcap – there is a rating of all cryptocurrencies by capitalization and a lot of useful information. No matter how reliable the crypto is, you can't trust it with 100% of the investment. It is better to distribute money to several tools, so you can reduce the risks of loss. For long-term investments, experts often say that you should choose cryptocurrencies that are in the top 30 at least. They are more stable, traded on many exchanges, and the probability of a sudden scam is minimal. Less popular coins also can be considered for investment. But it is worth understanding that, besides the risks of the fall in rate, there is also a risk of the slip-off. Follow all social media and forums, and monitor its activity: the more useful news on the topic, the better. If you see the developers do nothing, there is no news, then this means that they have lost interest in their project. It's better not to buy such a coin. It is also important to know if there is activity from investors. Also, some coins can operate only on one blockchain, and some you can use on different. So if you are going to trade your funds, ‌keep it in mind and learn about the cross-chain process.   Storing Crypto When you are ready to buy crypto, you must choose the type of its storage. Cryptocurrency wallet – an app, program, or separate device for sending, receiving, or storing electronic money. They are also can be “hot” and “cold”. A hot wallet connects to the internet and could be vulnerable to online attacks, but it’s faster and makes it easier to trade or spend crypto. A cold wallet typically has no online connection, so while it may be more secure, it’s less convenient. Below there are five types, with a brief description of their advantages and disadvantages: Software Wallet (Bitcoin Core, Exodus). These wallets store crypto funds right on your computer. And you usually need quite a lot of space for this. For example, for a minimum installation of Bitcoin Core, you need at least 145 GB on your hard drive - and this is for only one currency; Online Wallet (Blockchain, Wirex). These wallets keep your coins in the cloud. You can use them from any device, even from your phone. But you need to choose the wallet carefully. If someone hacks it, you will lose all. Hardware/ Cold Wallet (Trezor, Ledger). These wallets are separate devices, so they are much more difficult to hack than a regular computer. But you need to carry them constantly, as well as remember the PIN. Mobile Application (MyCelium, Breadwallet). An IOS or Android app that allows you to manage your tools. Convenient, easy, and fast storage, but with low security. In addition, if your phone was lost, the finder will get full access to the wallet. Paper Wallet (WalletGenerator.net, MyEtherWallet.com).  A special site generates private and public keys, that can you can print or record. Also, remember that except for a sheet of paper on which the keys are recorded - they are nowhere else, so the loss is equivalent to the loss of all the money. For investment, cold wallets are better. Thus, you can keep cryptocurrency on a computer or flash drive. Plus - security, no one can steal funds without direct access to it. For trading, the exchanges are the best. Using it, the client can sell or buy crypto and use additional options. Crypto Exchanges When choosing a cryptocurrency exchange, a novice investor needs to focus on some indicators. Such as: Financial turnover of the crypto platform. Large financial turnover shows enough money in the closures of the exchange, meaning that many traders use such a platform. So, such an exchange is high quality and the trader will not have any problems with it. The reputation of crypto exchange. Fees, which are not the same everywhere. For residents of different countries, crypto exchanges can also set geographical limits. The number of trading pairs on the cryptocurrency platform and their market rate. Payment options: find out how and how quickly you can transfer money to a crypto exchange account, and then withdraw it to your account or card. All cryptocurrency exchanges are divided into: Centralized Cryptocurrency Exchanges (CEX): Coinbase, Gemini, Kraken Platforms, where users can trade cryptos and ordinary fiat. They coordinate cryptocurrency, trading on a large scale, using a similar business model to traditional stock exchanges. Centralized exchanges usually offer their customers support, various trading pairs, and gateways for receiving and withdrawing, as well as additional services, for example, stealing, storage capabilities, IEO or DeFi services. Decentralized Cryptocurrency Platforms (DEX): WavesDex, Bancor, Besk, Uniswap Unlike traditional CEX, on such platforms, transactions and trades are automated by using smart contracts and decentralized applications. This type of crypto exchange is much safer since a well-written smart contract will not allow hackers to hack it. There are also aggregators like SwapSpace, where you can look at several offers and choose the crypto exchange that suits you best.  Swapping Crypto If your end goal is not just to put the purchased crypto in a stash, then you can exchange it for another coin. Swapping is a similar process to trading but with more flexibility. You can exchange any cryptocurrency for another even if the pair is not live on-the-spot market. This eliminates paying transaction fees more than once. In most cases, if you’re only swapping a small amount, convenience is the bigger concern here. That said, crypto swapping applies to any level of volume. Buying Crypto with a Credit Card The fastest way to buy crypto is to use a credit card. The process for buying crypto with a credit card is fairly straightforward: Find an exchange that allows credit card transactions. Your first step is signing up for a crypto exchange that allows you to use a credit card. And be ready to pass the KYC . Double-check that your card issuer allows crypto purchases. Enter your payment method. Set up your transaction. Pay off your balance as soon as possible. Pros and Cons of Buying Crypto With a Credit Card Pros Investing without cash on hand. Potentially earning rewards on your investment. Cons Purchases are often treated like cash advances. Higher fees. Your credit score could take a hit. Even more risk. Bottom Line Digital asset trading needs to be taken seriously, calculated every step, and thought about possible negative consequences. The beginner should first decide whether to invest or trade. Then study the theory, take some courses, and practice with test mode. Then choose the cryptocurrency to buy and be ready to lose. There is no game of luck. Don’t neglect crypto education. Crypto trading is hard work. It may take years to understand how the price of assets behaves in a particular situation. Don’t trust anyone and don’t hurry – do your own research before deciding. Choose the proven platforms for transactions and do not fall for fraudsters' ploys.
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Bitcoin Futures Trading And ETFs: What's All the Fuss?

Bitcoin Futures Trading And ETFs: What's All the Fuss?

June Katz 5 min read
Despite the governments around the globe’s growing efforts to bring crypto markets under control, many aspects of them still somewhat resemble the Wild West — what with the play-to-earn games boom, NFT speculation, and other features that are often poorly understood by the officials. However, at the same time, there are some tendencies bringing “traditional” legitimacy to some aspects of the vast cryptocurrency market. One of the signs that Bitcoin , specifically, is getting more and more mature as a currency and as a market is the recent appearance of the Bitcoin futures ETFs. Going Legit: What Are Bitcoin Futures First, let’s take a quick look at what the futures themselves are. In short, they are contracts that obligate the parties to sell and buy the specified asset at some fixed time in the future (at the contract expiration date) for a fixed price. The underlying assets for the futures contracts may be stocks, commodities, etc; in 2017, Bitcoin joined the ranks of such assets. Bitcoin futures have been trading on several exchanges since then, some of them institutionally regulated, like Chicago Mercantile Exchange (CME), and some unregulated, like Binance. In general, the purpose of a futures contract may be to hedge against volatility, to speculate on the prices, or to reduce uncertainly while planning future investments (as the price paid at the expiration is known in advance). Some futures markets allow cash delivery instead of physical one, meaning that the parties don’t have to exchange an underlying asset at the end of the contract, operating with its cash equivalents instead (and in the case of the Bitcoin futures, this means fiat currency). Just like another popular cryptocurrency derivative product, perpetual swaps, futures trading is usually leveraged. This means that the buyer doesn’t pay the whole price of the contract upfront but just a part of it (the rest is put up by the broker, hence “leverage”). This allows the trader to get more profits, compared to the initial payment, if the trade goes well, although the risks are higher too (bad trade may put him or her into debt towards the broker by the contract’s close). Bitcoin Futures Trading: Pros And Cons Bitcoin futures, specifically, have several features that fit this particular asset very well. First of all, as futures don’t require access to the underlying asset itself, the investor can gain exposure to it without getting into Bitcoin trading which sometimes deters institutional investors (and even retail investors are sometimes hesitant to create wallets and learn the nuances of trading crypto itself). Secondly, the futures market is regulated — which, again, is more attractive to institutional investors. Also, there are mechanisms akin to stop-loss in place, which allow the investor to cut their losses. There are also some negatives to watch for. Leverage makes the trading riskier: as the wins are amplified, so are the losses Futures are “not the real thing”: the traders don’t own Bitcoin, just the contracts to buy and sell Futures contract’s value is fixed (you can’t buy a partial contract), and it can be pretty steep. For example, the CME Bitcoin futures price is 5 bitcoin for one futures contract (although it’s in the process of launching micro Bitcoin futures, with the price of 1/10 bitcoin). We Must Go Deeper: Why ETFs There has been a big push towards the crypto ETFs, and in October 2021 the news came: SEC has approved Bitcoin ETF, which is the first for this market. ETF is an exchange-traded fund tracking the price of an underlying asset. In the case of the futures-based Bitcoin ETFs, the price getting tracked is not the current, or spot, Bitcoin price, but, as the name implies, the price of the Bitcoin futures available at the moment. The purpose of Bitcoin ETF is ostensibly to offer exposure to this asset to the traditional investors with more trust in the stock market than the crypto one, who nonetheless are looking for the best crypto to invest in now (as seemingly everybody does). Bitcoin ETF Trading: Pros And Cons ETFs issue shares, and as such allow for more granular trades than the futures contracts. Bitcoin (or, for that matter, any crypto) ETFs are traded on a stock exchange, eliminating the need to either learn specifics of the futures trading or, in the case of Bitcoin, learn the ins and outs of the cryptocurrency trading . On the other hand, there are issues with ETFs. Just a few examples are: Futures-based ETF can underperform the underlying asset, both because of the management and other fees taken from the investments and because of the imperfections in the tracking mechanism. ETFs are traded during market hours, not 24/7. ETFs gains are also subject to more taxes than futures. Considerations And Consequences: Bitcoin Futures Trading And Bitcoin ETF News Trading Bitcoin futures themselves, while may be profitable for the experienced investor familiar with this instrument, is not easy to get right (and expensive!) for a novice. Moreover, it can prove either too risky (if it’s happening on an unregulated platform) or hard to get into (on the regulated futures exchanges requiring setting up an account). On the other hand, it’s easier to start trading Bitcoin futures ETFs, which can be as simple as buying some shares through a Fidelity account. While not necessarily offering as much to gain as futures (and still risky), they can mitigate some investors’ concerns. Combined with the above-board structure of the ETFs, this facilitated strong investor interest: just a month after its launch, the pioneering ProShares Bitcoin ETF (ticker BITO) has more than $1.3bn in exposure, with others — Valkyrie and VanEck Bitcoin ETFs — trailing not far behind. Still, this is not all that the brokers and investors wanted. In 2021, the battle with SEC for the spot, not futures-based Bitcoin ETF approval seems all but lost — but there’s no way this is the end. By the looks of it, though, for this kind of SEC Bitcoin ETF approval, BTC undoubtedly will have to come under the regulator’s gaze even more. Conclusion: What Does It All Tell Us About the Bitcoin Future While the Holy Grail for the traditional trader interested in crypto exposure — a spot-based Bitcoin ETF — is not yet here, the current situation is a big step toward Bitcoin’s wider adoption and legitimization. It’s undeniable now that both institutional and retail investors are taking note of Bitcoin’s market power, despite the general public’s history of distrust toward the cryptocurrency crowd. This also might be opening the doors to other cryptocurrency ETFs and futures to follow. While this is exciting for many, there’s also the opposite opinion: bringing Bitcoin into the big leagues defeats its purpose as a decentralized currency. It does seem ironic that the asset whose whole history started with the words “Chancellor on brink of second bailout for banks” is moving full steam into Wall Street markets. But of course, it might be that Bitcoin trading will bring changes there — and not the other way around.
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