The recent approval of the Bitcoin ETF in the United States has opened up opportunities for various strategies at the intersection of the cryptocurrency market and traditional finance.
Former CEO of BitMEX, Arthur Hayes, noted the significance of this milestone. Some of the potential opportunities include the creation and redemption process of ETFs, arbitrage on spot exchanges using time series analysis, ETF derivatives like exchange-listed options, and the impact of funding transactions on exchange traded funds.
One of the major factors that led to the approval of the Bitcoin ETF is the expectation of sustained high inflation in the near future.
This could lead to Bitcoin ETFs attracting a portion of capital that would have otherwise gone into bonds, as bond prices are expected to decrease despite the Fed’s efforts to ease policies.
Hayes linked this to the ongoing wars caused by the breakdown of the Pax Americana and the subsequent rise in prices. If the Bitcoin ETF is successful, Hayes predicts a shift in the way the price of digital gold is determined, with more influence coming from the Western Hemisphere.
