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Bitcoin ETF will not have a big impact on the actual holding in the market, says eToro CEO

Anvita M V



Bitcoin ETF will not have a big impact on the actual holding in the market, says eToro CEO
Source: Pixabay

Recently, the popular crypto-influencer Ran Neu-Ner, also the host of Crypto Trader, interviewed Moshe Hogeg the CEO of Sirin Labs, Daniel Peled the CEO of Orbs, Yoni Assia Founder and CEO of eToro, and Yaniv Feldman the CEO of One Alpha. The speakers discussed the Bitcoin ETF and its influence on the crypto market.

Ran Neu-Ner started the discussion by asking the speakers how important they thought Bitcoin ETF was to the crypto market.

In Yaniv Feldman’s opinion, the Bitcoin ETF in a generic sense is a kind of a signal that the industry hopes to see. He added:

“I think that people are looking at the ETF more as an agreement of the SEC to forbid going to be something regulated or something that they can regulate,”

In his sense, people who are afraid at this point in time will be able to invest safely he concluded. As the discussion deepened, Ran Neu-Ner asked if SEC’s decision would impact the cryptocurrency market and people would begin seeing a bull market.

According to Founder of eToro, the ETF will not have a big impact on the actual holding in the market in a short term. He believes that the signal that legitimizes Bitcoin [BTC] is important to people. Explaining further, he said:

“If I’m not mistaken it’s around a hundred billion dollars and it took more than ten years to get there so we can expect probably less than a billion dollars in the Bitcoin ETF in the first six to twelve months which is not that significant to the market.”

Moreover, he stated that he would like to see people actually understand how to hold and transfer Bitcoin. The real change would appear when investors actually hold Bitcoin and custody them rather than going to traditional infrastructure markets, he added.

Neu-Ner asked Daniel if it was the requirement of an ETF for the underlying asset to actually get held somewhere, and if that was not the fundamental difference between an ETF and a futures product for example. To this, Daniel Peled stated that there are some ETFs holding underlying assets and a few other holding the futures and it is necessary for them to be backed.

However, according to him, the interesting point of discussion is the security of the digital asset. In his opinion, a lot of people in the cryptocurrency industry believe that if they own the private key, they become their own bank. On the other hand, the CEO believes that it is very hard from a security perspective to secure digital assets. Moreover, many have been stolen over the years, he added. He further stated:

“If I had a heart issue, I would go to the doctor rather than try to operate on it by myself, and the same thing goes for people with large amounts of funds under their control. I would want funds to be secured by somebody professional. So, I do think that for mainstream adoption we do need to see such instruments or, you know, real custodian solutions that institutions and the public can avail of”

Backing his opinion, he also explained the reason why Coinbase is one of the fast-paced companies in the crypto space. He stated that Coinbase hopes that people buy and sell digital assets, but at the same time they are custodians and that is what the ministry is looking for, he explained.

Speaking of Institutional money, Ran Neu-Ner said that the cryptocurrency community hopes that the ETF is the bridge that will enable institutions to bring money into cryptocurrency and questions if any institutional money is in the current scenario is encrypted.

Moshe Hogeg was confident in stating that there is no significant percentage of institutional money in the cryptocurrency industry at present. Nodding in acceptance to Yaniv’s statement he stated that the legitimization of Bitcoin is very important from a psychological perspective.

Ending his statement on a contrary note, Yaniv believes that the crypto world will not see ETF at the end of this year. In his words:

“I assume not, unfortunately, because I don’t think that the industry is ready for that in terms of both custodial solutions, I think they are, but they’re not you know in the institutional level.”

Pointing out to the fact that SEC’s denial was due to the fact that most of the volume in the market is unregulated and the fact that at present the market is seeing a lot of price manipulation even in the regulated markets is a problem, he explained. He also added:

 ” When you want to regulate an asset you want it to be safe for consumer usage. that’s a problem even though that in the traditional markets you know it’s just the same it’s just that in the traditional markets people do it under the table and in crypto, they’re doing over.”

Yoni stated in confidence that the industry will see a Bitcoin ETF. However, he also agrees that it will definitely take time but eventually the market will get there.

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Anvita Mysore Vadiraj is a full-time content writer at AMBCrypto. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies.


Bitcoin [BTC] will take another 22 years to regain its all-time high, says research analyst

Akash Anand



'Bitcoin [BTC] will take another 22 years to regain its all-time high', says research analyst
Source: Pixabay

Bitcoin [BTC]’s rise and fall has been a consistent event that has grabbed headlines in the cryptocurrency space. According to the latest financial analysis conducted by UBS research analyst Kevin Dennean, the fans of the cryptocurrency will have to wait for over 22 years to climb back to its earlier heights of $19,000- $20,000.

Dennean made these claims comparing the pattern of Bitcoin and the cryptosphere with the trends of other financial system crashes like the Dow Jones crash of 1929, the NASDAQ slide in 2000 and the Oil tumble of 2008. The UBS analyst pointed to how a lot of the cryptocurrency’s proponents stated that Bitcoin is en route to a bull surge because ‘other assets did that in the past’. He laid the foundation for the delayed rise of Bitcoin by saying:

“We’re struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are.”

Dennean was also of the opinion that not every bubble that bursts recovers its old highs, taking the example of the Nikkei crash, which after 30 years of its fall, has still not managed to reach its earlier peak, currently trading at around half its all-time highs. The Japanese asset price bubble was an inflated economic bubble in the late 80s where the real estate and the stock market prices were greatly volatile. In 1992, the price bubble burst and Japan’s economic machine came to a standstill.

Another figure used by Dennean was the fact that all the asset classes, including Bitcoin, fell by 75 percent with Bitcoin breaching the 80 percent barrier. After the crash, only the Dow Jones and the NASDAQ provided a reprieve to users after rising back to its earlier highs.

At the time of writing, Bitcoin was trading for $5292 with a market cap of $93.423 million. The 24-hour trading volume was clocked at $12.985.

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