Arthur Hayes considers how to utilize Bitcoin spot ETF and market outlook

Considering Bitcoin ETFs

On the 15th, Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, published his thoughts on the Bitcoin (BTC) spot ETF (exchange traded fund) that was approved in the US last week.

This time, while explaining the structure of ETFs, we will consider investment methods that utilize ETFs and their effects. Hayes also said that he still expects the market capitalization of cryptocurrencies such as Bitcoin to reach or exceed its all-time high by the end of 2024.

“The ETF structure provides an excellent investment opportunity for investors who can trade in the traditional asset and crypto markets,” he said.

He then gave examples of the use of ETFs, such as arbitrage that takes advantage of the time the ETF uses to refer to the price of Bitcoin, the underlying asset, option trading using ETFs, and fund procurement using ETFs as collateral. .

He explained that Bitcoin price discovery is primarily done on the global version of Binance, and that Bitcoin is an asset traded on global markets.

He also introduced the advantage that Bitcoin has not had a high correlation with traditional assets such as stocks and government bonds for five years since August 2018.

connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

Future outlook

While considering ETFs, Hayes points out that “the financialization of assets through traditional finance generally causes the price of the underlying assets to rise in fiat currency terms, at least initially.” He also expressed the view that, “If Bitcoin is added to the financial markets of the United States and then China (Hong Kong), the price of Bitcoin will rise in the medium term.”

connection: Hong Kong, 10 companies considering issuing virtual currency spot ETF = report

On the other hand, regarding my own investments, I will not be investing in cryptocurrencies until mid-March, when the U.S. central bank makes a decision on interest rates and the U.S. Bank Term Funding Program is expected to be updated. He said he has decided not to add any risk to his portfolio.

He also believes that the bull market has only just begun, and that 2024 will be a year of significant price fluctuations for cryptocurrencies.

connection:Why Arthur Hayes predicts a sharp fall in Bitcoin in March What are the three major events to watch?

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