Bitcoin ETFs Have the Potential to Trigger a Crypto Super Cycle, Here's Why

Bittime - The launch of a spot Bitcoin ETF has created a new wave in the crypto market, with nearly $60 billion in assets under management in nine months. 

Bitwise's Jeff Park explains the potential for cross-collateralization with non-crypto assets and its impact on margin systems. Listen to the explanation!

Bitcoin ETF Fuels Crypto Supercycle

Having generated nearly $60 billion in AUM in just the first nine months of its launch, spot Bitcoin ETFs have become the most successful on Wall Street.

Many people argue that volatility will be reduced by the objective of spot Bitcoin ETF options. However, Jeff Park challenges this common belief by stating that it could lead to an instant super cycle for Bitcoin in the future.

The Presence of Cross Collateral in the Crypto Space

In his recent interview with Anthony Pompliano, Jeff Park emphasized the possibility of cross-collateralization in the crypto space. 

Bitwise executives underscored how important it is to include uncorrelated assets, such as GLD ETFs or gold assets, in Bitcoin's collateral list. 

This cross-collateralization can build a more effective margin framework that allows assets outside of crypto to be used as collateral in a regulated environment.

Opening New Opportunities for Margin System

These changes will open up new opportunities for margin systems, Bitwise executives said. Additionally, he stated that Bitcoin options trading can amplify market movements, both upward and downward. 

Park also added that the long-term impact depends on the development of the options market. Current Bitcoin price is still quite significant.

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Spot Bitcoin ETF's Soar

On Monday, October 7, spot Bitcoin ETF inflows surged to $235 million, with Fidelity FBTC leading with $103.7 million, and BlackRock's IBIT leading with $97 million. 

Approval of options for the IBIT BlackRock Bitcoin ETF may make this instrument more attractive in the future.

BTC ETF Bitcoin Can Surpass Satoshi Nakamoto Bitcoin

According to the latest report, it is very likely that the amount of Bitcoin held by the BTC ETF will surpass the amount of Bitcoin held by Satoshi Nakamoto. 

With Len Sassaman leading the prediction poll, an HBO documentary released today will reveal who created Bitcoin.

Conclusion

Management has generated nearly $60 billion in assets in the nine months following the launch of a spot Bitcoin ETF, fueling a potential Bitcoin supercycle. 

Bitwise's Jeff Park emphasized that to improve margin systems, cross-collateralization with non-crypto assets is essential. 

The number of ETF registrations is increasing, indicating strong institutional interest, and the amount of Bitcoin held by the ETF may be greater than Satoshi Nakamoto's holdings.

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