Bitcoin ETF listed, cryptocurrency ushered in the dawn

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Supervision by the U.S. Securities and Exchange Commission ​ The Commodity Futures Trading Commission (CFTC) approved bitcoin futures trading in 2017 and started trading in December 2017. In 2021, the CFTC allowed the Chicago Mercantile Exchange to list Ethereum futures, which will begin trading in February 2021. ​ CFTC regulation allows regulators to monitor all trading activities. ​ At the same time, the US Securities and Exchange Commission (SEC) has been reviewing applications for Bitcoin and Ethereum ETFs for the past few years. Gary Gensler, the current chairman of the US Securities and Exchange Commission, was the former head of the Commodity Futures Trading Commission. The SEC believes that the best way to regulate is to approve futures-based ETF products, because futures contracts are already under the regulatory umbrella, so that the regulation is consistent. ​ However, the application of ETF products to hold physical bitcoins or other cryptocurrencies has brought special regulatory challenges to the SEC. ​ Regulation and safety are still issues ​ The two main issues facing cryptocurrencies are custody and security. Hacking attacks, ransomware requirements, and other risks surrounding the holding of online cryptocurrency are unique challenges for regulators. ​ Choosing futures-based products can kill two birds with one stone. ETF meets the market’s demand for cryptocurrency because it replicates the price trend of cryptocurrency. At the same time, BITO products reflect futures prices rather than physical prices, providing regulators with a two-pronged approach to control and manage potential manipulation. ​ The US Securities and Exchange Commission won time for the approval of BITO. Henry Clay was a 19th-century American senator, known as the “great compromiser.” He once said that a perfect compromise will only occur when the two parties in the dispute leave the negotiating table unsatisfactorily. I think BITO is a huge compromise. ​ Cryptocurrency enthusiasts prefer to see ETF products such as SPDR Gold Trust ETF, which holds physical gold, not just derivatives based on futures. ​ In addition, governments that support the maintenance of the status quo may worry that the growth of emerging asset classes will threaten their control of the money supply. Therefore, governments of various countries can at best accept them as secondary sideline assets. ​ Square’s system ​ Square Inc (NYSE:SQ) is a payment company. Jack Dorsey, the founder and CEO of SQ, stated that his company is building a Bitcoin mining system that will introduce new software to help the leading cryptocurrency’s activities among users. ​ On October 15, the CEO of SQ was also the founder and CEO of Twitter (NYSE: TWTR) and wrote on Twitter: Square is considering building a customized silicon and open source platform for individuals and businesses around the world. Bitcoin mining system. ​ Dorsey is a strong supporter of cryptocurrency. He calls cryptocurrency “Internet currency”. A strong custody and security solution will greatly help in advancing asset classes and increasing the addressable market for the use of encryption and digital currencies by companies, individuals, and even governments. ​ Dorsey believes that cryptocurrency is a global means of exchange that will “unify the world.” Last weekend, he warned that hyperinflation was a clear and real danger, saying: “Hyperinflation will change everything.” ​ The supply of Bitcoin is limited. As long as it is widely accepted, it can become an effective inflation hedge. This seems to be Dorsey’s motivation for betting. ​ If it can successfully solve the custody and security issues, Square can lay the foundation for a Bitcoin physical ETF and other cryptocurrency products. ETFs provide individuals with alternative investment options through their standard stock market accounts, expanding the audience for investment and trading activities. ​ Mr. Dorsey is a globalist, a visionary, and a leading technology leader. Whether you agree with his global vision or not, he is making waves. The government may not like him because he directly challenged their control of the world economy. Money and power are interrelated. Returning the power of the money supply to individuals through cryptocurrency asset classes is a departure from the status quo. Without an epic battle, the government will not give up this power. ​ Early performance ​ The early performance of the BITO ETF shows that the market has a very strong demand for cryptocurrency products. The rise of Bitcoin triggered a speculative frenzy. Few in history have as many bulls as Bitcoin. ​ The currency’s ideology may be more important. The rise of the crypto asset category is a challenge to fiat currencies. The value of these fiat currencies comes from the credit of the government that issued the fiat currencies. The rise of cryptocurrency reflects the decline of legal currency. If Dorsey is right, hyperinflation will quickly erode the value of fiat currencies. ​ On October 19th, Bitcoin futures opened at $61,905. It rose to a high of $67,680 on October 20, fell to a low of $60,210 on October 22, and fell to $62,000 on October 26.

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