Alex Thorn is concerned that Bitcoin ETFs may be inflated beyond measure. However, investors still believe in the possibility of approving Bitcoin ETFs. In a recent discussion, Alex Thorn, Head of Research at Galaxy Digital, shared deep insights into the potential impact of Bitcoin Exchange-Traded Funds (ETFs) on the cryptocurrency market during an appearance on the “Bankless” podcast on YouTube. One of Thorn’s main concerns is that Bitcoin ETFs may be inflated beyond measure. He believes that the market may already be pricing in the approval of ETFs. Thorn even compared the hype around ETFs to a balloon, indicating that the market’s reaction may not meet expectations. Another skeptical viewpoint focuses on Bitcoin’s historical behavior during volatile market periods. Bitcoin tends to be more of a risky asset than a safe-haven asset. Therefore, in times of financial crises or significant market fluctuations, investors may not rush into Bitcoin as a store of value, thus reducing the impact of ETFs. Additionally, it should be noted that significant changes in the global economic environment, such as sudden inflation or geopolitical crises, can alter the demand for Bitcoin. During times of chaos, investors may turn to alternative assets, weakening the optimistic narrative surrounding the approval of ETFs. Does the ETF cause price psychology to decline? Thorn also warns of the phenomenon of “buy the rumor, sell the news.” Even if an ETF is approved, the initial hype may not immediately translate into capital inflows. The launch of these products may be delayed due to management processes, and it may take time for brokers and advisors to provide these products to clients. In the context of future ETFs being different from Bitcoin spot ETFs, Thorn notes that these products may not be suitable for long-term investors. Because ETFs incur decommissioning and reinvestment costs over time, they are better suited for short-term trading. This factor may hinder long-term investors, including financial advisors who often serve such clients. This bearish stance also takes into account potential legal barriers. Although Bitcoin may not be the main focus of regulatory bodies, broader regulations related to cryptocurrencies can affect the market. Factors such as mining restrictions or self-regulation restrictions can impact the overall attractiveness of Bitcoin ETFs. However, the bullish camp remains confident in the approval of Bitcoin ETFs. They see these products as powerful market tools that revolutionize asset management. They provide convenience in trading, accessibility, and applicability to various investors, organizations, or retailers. ETFs not only provide an entry point for institutional players but also act as a stamp of approval, reinforcing the maturity and widespread acceptance of Bitcoin. With major asset managers BlackRock and Fidelity supporting Bitcoin and ETFs, the narrative surrounding this investment option may become more positive over time.
Tạp Chí Số tổng hợp
![Terra LUNA Classic [LUNC] Price Prediction 2025-2030: LUNC surges by 30%, could rally further](https://file.tapchiso.com/wp-content/uploads/2023/07/terra-luna-LUNC-fi-1000x600.jpg.webp)
![Terra LUNA Classic [LUNC] Price Prediction 2025-2030: LUNC balances recovery and relapse](https://file.tapchiso.com/wp-content/uploads/2023/07/lunc-classic-fi-1000x600.jpg.webp)
