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here has been much debate about the role of Bitcoin and the potential impact of an ETF (Exchange-Traded Fund). Ben Zhou, the co-founder and CEO of Bybit, recently shared his perspective on this matter. According to Zhou, institutions are in greater need of an ETF, rather than Bitcoin itself.

Bybit CEO wearing black coat and white shirt
Bybit CEO Ben Zhou

The Long-Awaited Bitcoin ETF

The concept of a Bitcoin ETF has been a topic of discussion among investors and enthusiasts for quite some time. A Bitcoin ETF would allow investors to gain exposure to Bitcoin without actually owning the cryptocurrency. This means that institutions could invest in Bitcoin through traditional investment vehicles, such as ETFs, which are regulated and familiar to them.

One of the main reasons institutions prefer the ETF over Bitcoin is the need for familiarity and regulation. Traditional financial institutions are often more comfortable investing in assets that are regulated and backed by established frameworks. Bitcoin, being a decentralized and relatively new asset class, can be seen as volatile and unregulated. Therefore, institutions may be hesitant to directly invest in Bitcoin itself.

Bitcoin's Resilience and Fundamentals

Despite the concerns surrounding regulation and volatility, Bitcoin has proven to be resilient over the years. It has withstood challenges such as bankruptcies, regulatory hurdles, and banking crises. Zhou highlights that Bitcoin's fundamentals are the driving force behind its growth. The underlying technology, the blockchain, and the increasing adoption by individuals and businesses contribute to Bitcoin's long-term potential.

Zhou believes that the approval of a Bitcoin ETF would have a significant impact on the entire crypto market. It would not only bring new money into the market but also instill a sense of confidence among investors. The involvement of traditional financial giants like BlackRock increases the likelihood of ETF approval. This could potentially lead to more institutional investors entering the crypto space.

Unresolved Questions and Bitcoin's Maturation

While the prospects of a Bitcoin ETF are promising, there are still unresolved questions surrounding its approval. However, Zhou emphasizes that Bitcoin's maturation as an asset class is evident, regardless of regulatory developments. The persistence of institutions like BlackRock shows that Bitcoin is gaining recognition and acceptance among the traditional financial sector.

A spot Bitcoin ETF, which would track the price of Bitcoin directly, is seen as a catalyst for institutional interest in the crypto space. If approved, it would provide institutions with a regulated and familiar way to invest in Bitcoin. This could potentially open the floodgates for more institutional capital to enter the market, driving further growth and stability.

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