Today, I came across an article by Mr. Weisha Zhu, the creator of DW20 and Chainless, on what transpired behind the scenes of the SEC approval of the U.S. Bitcoin spot ETF. I found it quite enlightening and wanted to share it with everyone.
Mr. Zhu cited a wealth of data, analyzing the major events before and after the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF and the statements and actions of related institutions and individuals, revealing the underlying insider stories and logic. He also profoundly discussed the far-reaching impact of the spot ETF on Bitcoin valuation and the future of the cryptocurrency industry.
The author harshly criticized SEC Chairman Gary Gensler’s approach of heavy-handed regulation with scarce results. He believes that Gensler failed to recognize the difference between consensus assets and legal assets, did not understand the greater importance of spot ETFs compared to futures ETFs, and that his improper regulation was the leading cause of a series of cryptocurrency market explosion thunder in the past two years.
The most interesting part of the article is the dramatized dialogue, which vividly showcases the power struggle between Larry Fink, representing U.S. mainstream capital, and Gensler, representing government regulators. The struggle resulted in a victory for financial institutions, traditional investors, and the crypto sector.
Moreover, the Bitcoin spot ETF launch is a significant victory for the USA. The author pointed out that Hong Kong’s new policy on crypto assets and China and Russia’s search for a gold standard based on blockchain technology indirectly led to this significant shift in U.S. regulatory policy. The U.S. political and business communities have agreed that since the development of crypto assets is irreversible, the U.S. should choose to lead the financial revolution ignited by Bitcoin.
The launch of the U.S. Bitcoin spot ETF has profoundly impacted the crypto world, symbolizing the arrival of a new era. From now on, Bitcoin’s pricing power will gradually shift from the crypto community to high-net-worth asset allocators, and trading volume will gradually move from the world’s largest exchange, Binance, to Coinbase. U.S. mainstream capital will steadily gain dominance over cryptocurrencies.
One controversial point in the article is the author’s declaration that the launch of the Bitcoin spot ETF represents the complete failure of the crypto-anarchist advocacy that began in the last century and the failure of anonymity. Will this provoke intense indignation among Bitcoin purists?
The article is rich in information, rigorous reasoning, and full of substance. It provides essential background analysis to understand the future direction of Bitcoin valuation. It’s worth your time to read it thoroughly.
