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The broader digital currency ecosystem is anticipating the response from the United States Securities and Exchange Commission (SEC) over the spot Bitcoin exchange traded fund (ETF) products being pursued by top asset managers like BlackRock, Grayscale Investments and Ark Invest. Commenting on the prospect for the market, top economist Alessandro Ottaviani shared five key reasons why Bitcoin may take a different twist post-ETF approval.
Bitcoin on track to rewrite history
Many experts have postulated what could become of Bitcoin should the market regulator choose to approve the mainstream asset class. Sharing his opinion, Ottaviani said he does not see the potential approval as a "sell the news" event as many critics have postulated.
First, he compared the age of Bitcoin with Gold, which is already about 5,000 years old. He believes that the fact that most people are still skeptical about including Bitcoin in their portfolio can give the coin a major boost when there is an enabling environment.
Secondly, Ottaviani named the fact that spot Bitcoin ETF has about 12 applicants who are now jostling to compete with one another for the most volume as a major bullish event that can impact the growth of the coin. Thirdly, the fast-paced movement of information as a result of the emergence of smartphones can also tilt the balance to give the likely spot Bitcoin ETF launch a mega liftoff.
The dilutive impact of more gold mining over time was also mentioned as the economist recalled the fixed supply of Bitcoin that stays at 21 million. With this, more institutional fund inflow may not match the limited supply, driving the price higher.
Bitcoin maxis effect
The last pointer shared by the economist hinges on the role of Bitcoin maxis, the individuals who are HODLing onto their BTC without plans of ever selling in the near term.
People in this category include Michael Saylor, whose firm MicroStrategy holds a large chunk of Bitcoin after consistent accumulations over the past few years. In all, Ottaviani believes that spot Bitcoin ETF might push the stock market to rewrite over 500 years of history.
U.Today Editorial Team
Dan Burgin
