2024-01-16 07:21:56
(Seoul = Yonhap Infomax) Reporter Jiyeon Kim = There has been criticism that the Bitcoin spot exchange-traded fund (ETF), recently approved by the U.S. Securities and Exchange Commission (SEC), is making Bitcoin’s problems worse.
James McIntosh, a Wall Street Journal (WSJ) columnist, said in a column on the 15th (local time), “With the launch of ETFs, Bitcoin holders lost Bitcoin’s original purpose, its function as a virtual currency, and made the mistake of investing at high points like past theme funds. “It repeats,” he pointed out.
First, columnist Macintosh pointed out that with the launch of the Bitcoin spot ETF, Bitcoin has lost its original purpose as a small-scale transaction tool, and that Bitcoin’s usefulness needs to be found anew.
He said, “If spot ETFs hold a lot of Bitcoin, it will become increasingly difficult to find utility with the remaining Bitcoin,” and as Bitcoin has become linked to existing financial infrastructure and the dollar, it is necessary to find a useful purpose for Bitcoin. pointed out that
BlackRock Chairman Larry Fink previously argued that Bitcoin should be recognized as an asset like digital gold.
However, Macintosh columnist said, “Bitcoin was the first to fall in March of last year when Silicon Valley Bank (SVB) and others went bankrupt and in March 2020 when the new coronavirus infection (Corona 19) broke out, making it closer to a speculative asset than gold in the crisis. It reminded me that there was movement.
Rather, his explanation is that it showed a close movement with Ark Investment’s fund ‘Ark Innovation ETF’, which invests in low-profitability technology stocks.
Macintosh columnist pointed out that the timing of ETF launch was also a problem.
He believes that the Bitcoin spot ETF was launched after the Bitcoin price had already risen significantly, increasing the possibility of losses for investors.
He also reminded that investors suffered losses because thematic funds such as the 1990s Internet fund and the 2021 space and special purpose acquisition company (SPAC) were launched only after the price of the underlying asset had already risen significantly.
In addition, in the case of the ‘L&G Hydrogen Economy ETF’ launched in 2021, it has never exceeded the price at the time of launch and is currently at a 61% decline since launch. He emphasized, “The timing of ETF launch is very important for returns.”
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This article was published on the Infomax financial information terminal at 14:21, two hours earlier.
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