The chief executive officer of the Castle funds investment firm , Dan Hoover ,in a meeting with crypto-news throws more light on the Bitcoin ETF , already discussed by cryptofxrate.
Dan gives more insights on the Bitcoin ETF which was approved earlier on January 2024.Stating the Cons and Pros of the ETF approvals and also enumerating several reason why the bitcoin ETF won’t make Bitcoin successful.
Dan enumerated core pros of ETF approvals, which includes
1)Faster accessibility for investors and competitors.
Spot Bitcoin ETFs come with a set of benefits. These include fewer access challenges for investors and a competitor for the poorly-performing futures-based Bitcoin ETFs, Dan argued.
2) ETPs reselling power to market participants.
“Over the next few months, the launch issues will ease a bit”.Dan Hoover stated
There will be an opportunity for the market participants – APs, broker-dealers, and options market-makers – to resellETPs as a broader category.)
3) Fair regulations on investors
Long-term, however, while ETPs are “a reasonable solution” to the regulatory ambiguity constraining access for most US investors,…..
More into the talks,Dan keyed in some Cons of ETF approval,including;
1)Poor solution to problems of the digital-assets market
“I believe that the ETP technology (with its additional liquidity sources, price discovery functions, etc.) is a poor solution to digital-asset market access problems.”
A few keys points for a project to be successful on ETF were noted from Dan hoover and also Shane Rodgers, the Chairman and Co-founder of the PDX platform,
1) Trading volume
“Trading volume is only powerful information if it results in creation of new ETP shares (assets in the Trust that the sponsor can charge a fee on).”Dan stated.
2) Authorized Participants (APs)
3) Strong Sponsor-Participant relationship
4)Quality Sponsor – Brokerage relationship
5) ETF market substitutes
Reasons why Bitcoin ETF approval won’t effect Bitcoin success
Just Because Bitcoin ETFs are Allowed Doesn’t Mean They’ll Succeed ,Dan hoover argued this giving suitable reasons as follows;
•The trading volume on Bitcoin ETF initial trading wasn’t supportive,proving that the supporting gamers of the ETPs aren’t ready
•Fewer amount of authorized participants to procreate shares,there by prolonging arbitrage opportunites.
•Poor asset substitutes there by increasing hedging cost.
LIVE CRYPTO RATES FOR TODAY
| Name | Price | 24H (%) |
|---|---|---|
 Bitcoin(BTC) | $63,808.40 | -3.68% |
 Ethereum(ETH) | $3,122.61 | -4.27% |
 XRP(XRP) | $0.52 | -4.24% |
 Cardano(ADA) | $0.468841 | -5.26% |
 Bitcoin Cash(BCH) | $477.08 | -4.37% |
 Litecoin(LTC) | $84.21 | -3.09% |
 Monero(XMR) | $118.73 | -2.51% |
 IOTA(IOTA) | $0.232645 | -9.34% |
 Dash(DASH) | $30.04 | -5.28% |
 NEM(XEM) | $0.038407 | -10.42% |
•High borrowing cost and
•Broker restrictions therefore limiting market markers transacting powers.
Finally,Dan Hoover gave his take as an investor in the bitcoin markets,he would prefer that the BTC held in an ETP be purchased in the market and belong only to the fund or Trust, instead of being borrowed from another party that keeps a claim on the coins.
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