Bedroom traders and analysts who dabble in cryptocurrency have long expressed their concerns about Bitcoin’s inability to surpass its all-time high. However, professionals from the Chicago Mercantile Exchange (CME), TradingView, and TJM Institutional Services believe that the launch of a spot Bitcoin exchange-traded fund (ETF) will play a crucial role in propelling Bitcoin’s price to new heights, fulfilling the dreams of traders.
During a discussion on the future of crypto derivatives at the Consensus conference, Pierce Crosby, the general manager of TradingView, emphasized the integral role derivatives have always played in the crypto trading experience. However, he noted that trading on centralized exchanges between 2015 and 2022 often resulted in spot and margin traders incurring significant losses due to high fees and slippage.
Crosby stated that the introduction of a spot Bitcoin ETF could potentially enhance Bitcoin’s acceptance as a legitimate investment asset and contribute to its price discovery. Giovanni Vicisoso, the Global Head of Cryptocurrency Products at CME Group, supported this notion, highlighting how ETFs have attracted investors who were previously hesitant to engage with centralized exchanges. Vicisoso also emphasized the deep liquidity of CME’s contracts and the growth in trading volumes, suggesting that these factors could benefit Bitcoin’s price discovery.
Over the years, there has been a debate about whether Bitcoin functions as a hedge against inflation or correlates with the performance of stocks and commodities. Jim Iuorio, the managing director of TJM Institutional Services, acknowledged the ongoing contention but pointed to recent U.S. Treasury auctions as a cause for concern. Iuorio believes that the Federal Reserve will eventually need to cut interest rates and implement easing measures, which historically have benefited stocks, risk assets, and Bitcoin.
Regarding Bitcoin’s perceived correlation with traditional markets, Crosby highlighted that there are instances where the crypto market follows the patterns of stocks, gold, and oil. Additionally, internal events within the crypto industry, such as the collapse of the FTX exchange and major centralized decentralized finance (DeFi) businesses, can negatively impact Bitcoin. However, Crosby believes that once the market realizes the limited connection between the crypto sector and its supposed corollaries, the crypto market will begin to recover.
It is important to note that this article is for general informational purposes only and should not be considered as legal or investment advice. The opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.