Bitcoin ETF approved outside of US

The Rise of Blockchain: Navigating the Cryptocurrency Market

In the latest episode of Cointelegraph’s The Market Report, analyst Marcel Pechman explores the recent developments in the blockchain industry. Specifically, Pechman discusses the approval and launch of the first spot Bitcoin exchange-traded fund (ETF) in the European Union, as well as the ongoing challenges faced by the United States in approving a spot Bitcoin ETF. Additionally, Pechman delves into the potential trajectory of Bitcoin’s price and its underlying value drivers.

The European Union’s First Bitcoin ETF

The recent approval of the first Bitcoin ETF in the European Union has sparked both interest and skepticism within the blockchain community. The fund, which has been listed on the Euronext Amsterdam exchange, is regulated by the Guernsey regulator, an unconventional choice. However, its listing on a major exchange indicates a strategic decision. Despite its potential, the fund’s launch with only 1 million euros and unfamiliar management raises doubts about its long-term success.

Challenges in the United States Bitcoin ETF Landscape

Turning to the United States, Pechman highlights the Securities and Exchange Commission’s (SEC) continuous delays in approving a spot Bitcoin ETF. The lack of regulatory clarity in the U.S. cryptocurrency market is a significant factor contributing to the SEC’s reluctance. The recurrent cycle of postponements reflects the challenges faced over the past decade in obtaining regulatory approval for a Bitcoin ETF.

Predicting Bitcoin’s Price Trajectory

Bitcoin’s price trajectory is a topic of great interest and speculation. Analyst Jesse Myers suggests that breaking the $100,000 barrier is closely tied to the block subsidy halving, set to occur in mid-2024. Contrary to the efficient market hypothesis, Myers argues that it may take 12 to 18 months after the halving for the market to fully absorb and reflect the implications of this event. While Pechman acknowledges the various factors that can influence Bitcoin’s trajectory, such as Federal Reserve decisions, banking liquidity, economic conditions, and unforeseen events, predicting market outcomes remains a challenging task.

Bitcoin’s Value Drivers

Pechman concludes his analysis by emphasizing the primary drivers behind Bitcoin’s value: the abundance of fiat currency and government debt. He foresees Bitcoin surpassing $100,000 in value; however, the real-world purchasing power of this sum may be diminished due to inflation. As global economies continue to grapple with increasing levels of debt and uncertainty, the appeal and relevance of decentralized cryptocurrency like Bitcoin remain strong.

For a more detailed analysis and insights, you can listen to the full episode of The Market Report on the new Cointelegraph Markets & Research YouTube channel. Make sure to subscribe to stay up-to-date with the latest developments in the blockchain industry.

Please note that the information provided is based on the opinions and analyses of Marcel Pechman and Jesse Myers, and it is always recommended to conduct personal research and consult with financial advisors before making investment decisions.

References 1. Cointelegraph. (2021, August 26). The Market Report | European Bitcoin ETF approval and more. Cointelegraph. URL: https://cointelegraph.com/news/the-market-report-european-bitcoin-etf-approval-and-more

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