The Arrival of Bitcoin ETFs with James Seyffart & Alex Thorn - WBD760

James Seyffart is an analyst for Bloomberg Intelligence covering
ETFs, and Alex Thorn is the Head of Firmwide Research at Galaxy.
In this interview, we explore the implications of the recently
launched Bitcoin ETFs. We delve into the mechanics of ETF
trading, analyse how ETFs might reduce Bitcoin's volatility, and
speculate on the future introduction of Ethereum ETFs and their
potential effects.


- - - -


There’s an old joke about waiting ages for a bus only for three
to finally arrive at once. Well, after a decade of submissions,
arguments and delays, 11 Bitcoin spot ETFs were given the green
light by the SEC on Wednesday 10th January, then launched onto
the market on Thursday 11th January where they attracted $4.6
billion in investment. This broke records for ETF investment. I
have had the chance to speak to Alex Thorn and James Seyffart
about this seismic event.


But what exactly are Bitcoin ETFs, and how do they function? In
essence, these financial instruments allow investors to buy and
sell shares that represent a certain amount of Bitcoin, so
individuals can invest in Bitcoin without the complexities of
directly buying, storing, and securing the asset. The value of
each share is pegged to a fraction of a Bitcoin, making it more
accessible to retail traders and opening the door for a broader
audience to participate in the Bitcoin market.


One of the most intriguing aspects of Bitcoin ETFs is their
potential to dampen the volatility of Bitcoin's spot market. A
substantial portion of Bitcoin will now be held in advisor
accounts, which are not prone to frequent trading. This shift
could lead to more stability in the market, as Bitcoin is placed
in "stronger hands." Bitcoin ETFs might also alter the pattern of
surges in altcoin prices, as Bitcoin becomes less readily
available for quick trades into other cryptocurrencies.


The revolutionary nature of Bitcoin and its potential to empower
individuals cannot be overstated. We reflected on the need for
broader support from institutions and investors to unlock
Bitcoin's full potential. Regulatory challenges, such as proposed
AML legislation, pose significant hurdles that could impact
competitiveness, market growth and restrictions on Bitcoin's use.
It's crucial therefore for ETF issuers to promote the true value
of Bitcoin and oppose restrictive legislation.


-


Show notes:
https://www.whatbitcoindid.com/podcast/the-arrival-of-bitcoin-etfs


This episode’s sponsors:
Iris Energy - Bitcoin Mining. Done Sustainably
Bitcasino - The Future of Gaming is here
Ledger - State of the art Bitcoin hardware wallet
Wasabi Wallet - Privacy by default
Unchained - Secure your bitcoin with confidence
Bitcoin Atlantis - A Bitcoin conference in the Atlantic
SwanBitcoin - Invest in Bitcoin with Swan