Impact of the adoption of Bitcoin ETF

Source: Daoshuo Blockchain

After many reversals and mistakes, the Bitcoin Spot ETF was finally approved by the U.S. Securities and Exchange Commission.

Driven by this news, the price of Bitcoin immediately jumped to US$47,000, and the price of Ethereum also exceeded US$2,500.

When I woke up this morning, the screen in my circle of friends was full of titles like "A historic moment, Bitcoin spot ETF passed."

From the birth of Bitcoin’s genesis block on January 3, 2009, Beijing time, to today, after 15 years, Bitcoin has finally been approved by authoritative regulatory agencies in the global financial industry and has become a popular and popular currency. Financial investment products that financial institutions can legally trade.

Although I have always firmly believed that this day will come, so in my usual articles, I do not particularly emphasize its significance, but when it really comes, my heart is still There is a unique sense of solemn ceremony.

Reading the relevant approval documents carefully, we can find that all the famous traditional Wall Street capitals are listed: Invesco, Fidelity, BlackRock, Franklin Templeton... .

It only took 15 years for Bitcoin to grow from a toy in the eyes of a small number of geeks to a top capital allocation asset.

In the eyes of these capitals, it may mean more of an investment target that can bring huge profits.

But in my opinion, this difficult journey is due to my gratitude to Satoshi Nakamoto and his countless predecessors and more unknown people like us who will never give up on this ecosystem no matter what the reason. And pay tribute to the unknown people who are forging ahead.

It is a practice of the great pursuit of freedom, equality, and privacy. It is a manifestation of power from the grassroots and bottom up, and it is the perfect combination of new era technology and human nature. .

The example set by the US Securities Regulatory Commission will definitely be followed by other European and American countries, especially Hong Kong, our country. Hong Kong's linked exchange rate system and the vigorously promoted construction of Web 3 have determined that after this, Hong Kong will more quickly promote the introduction of relevant rules and the implementation of financial products.

The popularity of crypto assets in most developed areas of the world has since opened a new chapter.

Regarding the far-reaching impact and subsequent effects of this incident, Block Rhythm has an article that summarizes it well, "Go down in history!" Bitcoin spot ETF passes, the encryption industry opens a new chapter”.

Among the multiple points summarized in the article, I think one is worthy of everyone's attention: that is, it predicts the price trend of Bitcoin after the ETF is approved. The object of its prediction is the trend of gold after the gold ETF is approved.

According to historical data, after the gold ETF was approved, it emerged from a bull market that lasted nearly 10 years. Therefore, the article quoted the opinions of some analysts, suggesting that the price of Bitcoin will also have a good increase from now on.

I generally agree with this.

However, I believe that even if Bitcoin will go out of the long bull trend in the future, it will probably still be affected by the small cycle. The price will rise and fall in the small cycle, and generally follow a wave-like pattern. The way is spiraling------In fact, in the past 15 years, the price of Bitcoin has been rising in this way.

In addition, I also believe that Bitcoin’s prospects will be better than gold, and its market value will one day exceed gold. Because gold is not an interest-bearing asset but merely a risk hedging and value store. Driven by this round of inscription technology, Bitcoin has surpassed the connotation of "value storage" and "digital gold" and is making great strides towards the direction of ecology. This ecosystem will drive the value of Bitcoin up multiple times like leverage.

But at the same time, another trend that is not friendly to retail investors is also quickly emerging: the future of Bitcoin will definitely become farther and farther away from ordinary retail investors.

This reminds me of an exchange on Twitter last Saturday when a listener asked, what advice do you have for newbies who have just entered this ecosystem?

My reply at that time was to buy some Bitcoin and Ethereum first. Now it seems that this advice cannot be emphasized enough.

The approval of the Bitcoin spot ETF is not only a sign of Bitcoin, but also a sign that crypto assets have become "legal" and "compliant." It is also the starting point for a new chapter of Bitcoin and the crypto ecosystem.