Wednesday, December 8

What opportunity arises with the new Bitcoin exchange-traded funds?

In October, a Bitcoin futures ETF was launched on Wall Street, a historic recognition by the United States Securities and Exchange Commission (SEC) that came after eight years of trading by issuers. of US funds. Valkyrie Bitcoin Strategy, the Bitcoin-traded index fund, reached a trade volume of nearly $ 1 billion on its launch day, making it the most successful debut ETF in history. Finally, in our country this week the news was known that the Matba Rofex Group, the main futures market in Argentina, requested the National Securities Commission (CNV) its approval to launch the first futures and options market of Bitcoin against Argentine pesos.

These new markets will surely generate an interesting scenario of competition between funds and will arouse the interest of many clients of large credit portfolios that will be forced to meet these demands towards Bitcoin, driving the growth of the crypto ecosystem.

However, What opportunities do these extremely important events open up for those of us who believe in the potential of decentralization? Beyond the economic and social value that Bitcoin has today as a digital currency that, without intermediaries or central banks that manage and manipulate the system, can function as a means of exchange or store of value, these milestones allow and drive the participation of each time more individuals, companies and institutions within a decentralized economic model. Although the model proposed by Bitcoin aims to eliminate unnecessary intermediaries, such as ETFs, an extremely valid question that different members of the crypto community make to this financial novelty when they consider it a regression to its foundations and principles, the opportunity of access that is open to people outside the crypto ecosystem is relevant. Bitcoin ETFs are traditional financial products that can be traded as a share, facilitating participation conditions for some traditional retail investors who need to operate in more regulated markets to place their holdings. In this sense, investment in ETFs, insofar as they operate indirectly with the cryptocurrency, are intermediaries (unnecessary according to the Bitcoin model) that still contribute to the rapprochement of actors who, due to restrictions in their statutes, could probably not access the asset the world’s most relevant digital site.

And this growth, this possible arrival of more individuals and organizations, drives the development of a decentralized and, therefore, more democratic economic model. Bitcoin is in the news, week by week, for its price, its ups and downs, and the sustained increase in adoption. But its greatest potential, as Satoshi marked (or marked) in that revolutionary document 13 years ago, is to promote a transparent, traceable, secure and consensual economy that walks (or runs) towards a new reality without intermediaries. And this is, without a doubt, its greatest value.

Executive Director of NGO Bitcoin Argentina