Bitcoin ETFs are causing a lot of furore and excitement in the crypto sector. With a Bitcoin futures ETF approved by the SEC, analysts are scrambling to figure out how the move will affect the rebounding king coin.

During an episode of The Investor’s Podcast Network’s Bitcoin Fundamentals, crypto influencer Preston Pysh spoke to Unchained Capital manager Parker Lewis about Bitcoin ETFs and their potential to transform the crypto economy.

Bitcoin ETFs. . .Yes or no?

Lewis suggested that due to powerful institutions in the crypto sector, a futures-based Bitcoin ETF could be the SEC’s “best exit” instead of a physically settled Bitcoin ETF.

However, the board was generally dissatisfied with Bitcoin ETFs. He said,

“An ETF effectively treats a monetary asset like Bitcoin as if it were a financial asset. And what did you do as a result when you bought it through an ETF? You took unnecessary counterparty risk and basically opted for an inferior way of owning Bitcoin when you could have owned it in a superior way. “

Regarding the impact of the move, Lewis suspected that ETFs would encourage more people – millionaires in particular – to take Bitcoin seriously. He admitted that “randomness” could cause the price to rise temporarily.

However, he found

“But for me that doesn’t change the adoption curve. That doesn’t change that fundamentally. “

Lending and Taxation

When lending Bitcoin, Lewis was quick to stress the risks. He warned that borrowing the king coin changes the nature of the asset. Lewis also reminded the audience that the institutions likely involved were “ultimately very young” and that there would be no bailouts.

He also spoke about the risk of margin trading, adding:

“They often lend bitcoin to someone who sells bitcoin short. And they try to get their income based on volatility. “

However, Lewis confirmed that he was working on a pilot project where an exchange would hold Bitcoin in “collaborative custody” while prices did not rise.

However, when Pysh asked him about Bitcoin taxation, Lewis was more relaxed.

He suggested,

“… I think at some point the federal government will change the tax treatment of Bitcoin to see whether they will treat it as legal tender as currency and thereby likely accelerate capital gains …”

He added that if he wasn’t selling Bitcoin, he wouldn’t have to worry about taxes.

times are changing

Regulators are certainly aware that due to China’s crypto crackdown, America now holds the largest share of the average monthly hashrate for bitcoin.

America’s average monthly hashrate share skyrocketed from 4.20% in August 2020 to 35.40% in August 2021, according to the Cambridge Bitcoin Electricity Consumption Index. As more powerful companies move into mining, regulators may also feel pressure to respond.

At press time, Bitcoin was priced at $ 60,677.44. The Bitcoin Fear and Greed Index recorded a value of 78, which indicates “extreme greed”.

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