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Fund management giant VanEck says conditions are becoming extremely favorable for bitcoin and the cryptocurrency industry as the year 2024 approaches.
CEO Jan van Eck, speaking in an interview at the empire podcastsaid that bitcoin has established itself as the main alternative to gold as a store of value, towards which the Federal Reserve is moving a lower rate policy, and that bitcoin is expected to halve in April.
“You have an almost perfect setup as a trade,” Van Eck said.
An essential episode with the CEO @JanvanEck3 and @mleinweber2 of @mercadovector
https://t.co/Fbc3beOmvN https://t.co/eGUwuqO3md
—VanEck (@vaneck_us) October 31, 2023
Van Eck, whose firm manages about $76 billion in assets, added that markets never seem to price in the halving, which always leads to a bull market.
“Why don’t people anticipate this?” he asked. “There is no accounting for the multitude.”
An essential episode with the CEO @JanvanEck3 and @mleinweber2 of @mercadovector
https://t.co/Fbc3beOmvN https://t.co/eGUwuqO3md
—VanEck (@vaneck_us) October 31, 2023
Van Eck believes politically motivated rate cuts ahead of the election may coincide with the bitcoin halving, as well as potential bitcoin spot ETF launches, creating a “very exciting spring” for investors. in cryptocurrencies.
He claims the Federal Reserve is nearing the end of its tightening cycle, and if one is cynical about cuts coming before next year’s election, he would want at least six months for lower rates to take effect. .
“We are near the end of this Fed tightening cycle,” he says. “We are certainly closer to the end than the beginning.”
Van Eck also sees movement at the US Securities and Exchange Commission (SEC) regarding potential bitcoin spot ETF approvals, where there was no movement until a month ago.
He points to the SEC’s recent approval of Ether futures ETFs as a potential model for spot bitcoin ETF applications.
“The SEC said, ‘Listen, we don’t want to give anyone a problem or an unfair advantage,'” he said.
Van Eck added that during the approval process for ether futures ETFs, the regulator told applicants: “We are going to try to get all of you to market on the same day.”
“And they did it. …I imagine they have something similar in mind for spot bitcoin ETFs,” she says.
bitcoin ETF Approval Is More Symbolic Than Anything Else
According to the executive, the approval of bitcoin spot ETFs is more symbolic than anything else, adding: “It’s important because everyone thinks it’s important.”
He says that not only because everyone around the world has “an eye on the SEC on this issue, but also because “it will also be a great product” on a practical level.
ETF spot productCTs have the advantage that they are super tax efficient for Americans compared to futures-based products, he said.
“If you look at the spot bitcoin products that are traded in Canada, Brazil and Europe, they are trading at really tight spreads,” he added.
Van Eck is not the only prominent TradFi industry personality to speak positively of bitcoin as a store of value.
Billionaire Hedge Fund Legend Stanley Druckenmiller recently compared bitcoin to gold as a store of value. It acknowledged its appeal to the younger generation in an Oct. 30 statement. interview with fellow hedge fund great Paul Tudor Jones.
The 70-year-old believes bitcoin has established itself as a “brand” over the past 17 years and said that while he doesn’t own any btc, he should.
Stanley Druckenmiller is one of the most successful hedge fund managers on Wall Street and is worth $6,200,000,000.
He says: “Young people look bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin as a store of value. It is a brand. I like it. I don’t have any, but I should”pic.twitter.com/DXjrnvE1Qc
— Documenting ₿itcoin (@DocumentingBTC) October 30, 2023
These bullish statements, along with optimism that the SEC will approve a bitcoin ETF in the near future, could be responsible for sustained growth. btc price demonstration in November.
bitcoin was trading at $34,500 at 5:30 a.m. EST, after rising 0.34% on the day.
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