Tuesday, October 3, 2023

Experts say Bitcoin ETF will make BTC a global asset but question whether this will be good for the crypto sector

This was the result of a survey by Marketsand Markets Research The tokenization sector reached a market cap of $2 million in 2021. Experts believe that this is one of the most important innovations in the decentralized finance ecosystem.

Cássio Krupinsk, CEO of BLOCKBR, explains that the system of representing physical and digital assets on the blockchain allows them to be divided into smaller parts that can be traded without intermediaries, making transactions more efficient and cost-effective. Furthermore, in his opinion BlackRock’s recent entry into the cryptocurrency market with a spot ETF application for Bitcoin signals a new phase in the marriage between traditional assets and digital finance.

“It is clear that the ETF stands out among innovative and popular investment products, providing investors with convenient and diversified access to financial markets,” he said.

BlackRock, an asset management firm, is one of the first institutions to invest in this universe and has simultaneously attracted others to do the same. US regulators still resist the model. Job “is based on Bitcoin the company is proposing, but if the exchange is allowed it could make the cryptocurrency more accessible to a large group of investors This is the case with Fidelity.

BlackRock focuses on ETFs, whose main advantage is diversification. Each unit typically covers a wide range of assets such as stocks, bonds or commodities, allowing investors to benefit from exposure to a variety of companies or sectors.“, he clarifies.

The CEO believes so Another important feature of the BlackRock ETF is transparency. Investors can monitor the composition of funds and assets held in real time, ensuring a clear and open overview of what is being invested.

This drives the popularization of investing among diverse groups, as ETFs typically have lower costs than traditional mutual funds, making them attractive to minority investors and those looking to maximize their net returns.“, keep going.

The CEO also talks about the example of BlackRock, which offers a wide range of ETFs that meet different investment objectives. From index funds that track specific returns to thematic funds that focus on niche sectors such as technology, sustainability or healthcare.

For her part, María Carola, managing director of StealthEX, emphasized this The first application for a Bitcoin ETF was submitted in 2013, so it was founded more than ten years ago. A decade later, we are still debating the spatial impact potential of the long-awaited ETF.

There is a good chance that cryptocurrency ETFs will have greater adoption potential than cryptocurrencies themselves, which will help the market. However, Is this really a great thing for the crypto space? As I see it, it isn’t. ETFs are problematic because they are controlled, not blockchain-based, and lack decentralization. Essentially this is the case everything that cryptocurrencies oppose. Is that really what we want: to deviate in this way and turn Bitcoin into another fiat currency? Most likely it isn’t.” explained Maria Carola.

Nation World News Desk
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