coinspress.com
In recent developments, the US greenlit the introduction of Bitcoin exchange-traded funds (ETFs), prompting jubilation within the cryptocurrency sphere.
However, IMF Managing Director Kristalina Georgieva has voiced skepticism.
Georgieva posits that cryptocurrencies should be viewed as assets, diverging from their classification as currencies. She compares money management funds, portraying them as distinct from conventional currencies.
These sentiments emerged just before the US SEC approved novel Bitcoin-backed ETFs. Corporations like Ark and BlackRock are now authorized to provide these ETFs, allowing individuals to invest in Bitcoin without directly owning the digital asset.
This signals a significant stride for cryptocurrencies into the mainstream, though Georgieva remains circumspect about their potential repercussions on established currencies like the US dollar. Nonetheless, she maintains that the likelihood of cryptocurrencies challenging the supremacy of the US Dollar is a concern for the distant future.
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Despite Georgieva’s reservations, optimists paint a different picture, including Gautam Chhugani from Bernstein and Alesia Haas from Coinbase. They perceive these ETFs as an avenue for increased capital infusion into cryptocurrencies, interpreting the recent market dip as an opportunity for investors to capitalize on discounted prices, underscoring the inherent potential of Bitcoin.
Since the ETF green light, Bitcoin’s market value has experienced a marginal decline to $42,700, marking a 6% downturn over the week. The broader impact of these ETFs on Bitcoin and the cryptocurrency market at large remains uncertain, and it is premature to predict the outcome conclusively.