The euphoria over the Bitcoin ETF is “unjustified,” says the president of the crypto manager

Last week, several Bitcoin (BTC) spot exchange funds were launched. The euphoria among the average Bitcoin investor was enormous. However, according to Ophelia Snyder, president of 21Share, this short-term euphoria is not justified. She said this in an interview with Blockworks.

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The Advantages of Bitcoin Exchange Funds

In the conversation, Snyder mentioned some of the key benefits that Bitcoin exchange funds (ETFs) offer. With the arrival of funds, crypto becomes accessible to professional investors who, for example, manage other people's money.

According to the president of 21Shares, another advantage is that it can be a safer feeling for investors to invest through a fund. “How convenient is it for the average crypto investor to send crypto from their crypto wallet? It’s never pretty.” ETFs make this process much easier.

Short-term optimism is not justified

The approval of the ETFs was characterized by great euphoria and optimism. And while it's a big development for the crypto sector, Snyder believes these positive feelings are unwarranted:

“They (the inflows, editor's note) will increase over time, so I think the short-term view is a mistake. I think they'll do very well in the first week – that's not to say I'm not confident about that – but I think the really transformative things that will change the way our industry looks at cryptocurrencies will take a little longer. “

The major asset managers are now busy attracting new investors. This also applies to the world's largest asset manager BlackRock.

The company has launched a major advertising campaign that looks a bit boring. Nevertheless, it is a clear signal that competition between the big managers has now really flared up.

Since the arrival of the funds, the Bitcoin price has dropped significantly in value. While the price was around $47,000 on the day of approval, it is 10% lower at the time of writing. The same effect is clearly visible in the important Bitcoin stocks.

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