Bitwise Head of Alpha Strategies explains how Bitcoin ETFs outperformed expectations

In a recent episode of the SlateCast, Liam “Akiba” Wright and CryptoSlate Lead Analyst James Van Straten welcomed Jeff Park, Head of Alpha Strategies at Bitwise, to discuss the groundbreaking launch of Bitcoin ETFs in the United States. Park shared valuable insights into the ETF approval process, the industry’s response, and the broader implications for Bitcoin adoption.

The Long Road to Approval

The journey to the approval of Bitcoin ETFs in the US has been a marathon, spanning over a decade since the Winklevoss twins filed the first application. Park acknowledged the persistence and determination required to achieve this milestone:

“It’s been close to plus 10 plus years of the timing of the application since its first inception with the Winklevoss twins. And so some of, I think, the growth that we’ve seen was because there was a lot of capital on the sideline anticipating this for almost a decade.”

Exceeding Expectations

Despite the lengthy approval process, the inflows into the newly launched Bitcoin ETFs have surpassed industry expectations. Park attributed this to the pent-up demand from investors who had been eagerly awaiting this opportunity:

“Honestly, it’s gone beyond our expectations as well. We try to be conservative in our estimations of what inflows could be, but the truth is that this has been a long marathon here in the U.S.”

Changing Perceptions

One of the key impacts of the Bitcoin ETF launch has been the shift in perception surrounding the asset class. Park highlighted the newfound confidence among investors, citing a recent family office conference where questions about the legitimacy of crypto were no longer raised:

“Anecdotally, I was at a family office conference last week and it was the first time in a while where nobody asked the question, ‘is crypto here to stay?’ It’s just out of the purview and, and that’s an incredible feeling.”

Is Bitcoin Safer at Higher Prices?

In a counterintuitive observation, Park suggested that Bitcoin might be perceived as a safer investment at higher price points due to the increasing acceptance and adoption of the asset class:

“[Bitcoin] is safer to buy it at $70k versus when it was at $10k because of all the ways that it’s become accepted in the psyche of people to think of this asset class.”

The Overton Window and Bitcoin’s Supply

Park also touched on the U.S. government’s daily interest burden, which he compared to the daily issuance of new Bitcoin. This perspective challenges the traditional notion of Bitcoin’s limited supply:

“The Overton window is actually incorrect. It’s not even about the issuance of new Bitcoin. It’s where the other fiat-based currency is finding inflation, and this is counterbalancing.”

As the crypto industry continues to evolve, the launch of Bitcoin ETFs in the US marks a significant milestone, signaling growing acceptance and mainstream adoption. Jeff Park’s insights from Bitwise provide a unique perspective on this historic event and its potential implications for the future of Bitcoin and the broader crypto ecosystem.

🎙️New SlateCast: Inside Bitcoin ETFs alpha strategies

“Is Bitcoin riskier to buy at $10k or at $70k? […] It’s safer to buy at $70k”

🎤: Guest – @BitwiseInvest Head of Alpha Strategy @dgt10011

🗣️: Hosts: @jvs_btc & @akibablade pic.twitter.com/L3JK1gGU1O

— CryptoSlate (@CryptoSlate) April 19, 2024

Episode Hosts

Liam Wright

Editor In Chief at CryptoSlate

Also known as “Akiba,” Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate.

Profile @akiba @akibablade LinkedIn Email

James Van Straten

Senior Analyst at CoinDesk

James fervently appreciates data, technology, and trend-spotting.

Profile @btcjvs LinkedIn

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