The launch of the first Bitcoin futures ETF in the US in October was a positive development for the cryptocurrency ecosystem, but such products are not suitable for long-term investments. This opinion CIO Bitwise Matthew Hugan voiced in podcast Scott Melker.
“We did see billions of dollars coming into the market, probably having an impact on the price increase. However, this is an imperfect product. It is suitable if you trade bitcoin for a week, but absolutely not if you hold the asset for a year or more, ”he said.
Hugan called the narrative that Bitcoin ETFs would “open the flow of money from Wall Street” to the industry as false.
Cryptocurrency futures ETFs are more risky than spot ETFs, he said. Due to volatility, the product implies increased maintenance costs and is not the optimal solution for institutional investors to enter the market.
Hugan noted that bitcoin futures exchange-traded funds do not offer investment attractiveness to financial advisors who manage most of US private equity.