Recently, the revenue of US Bitcoin exchange-traded funds (ETFs) has performed well and hit a new high. This trend has attracted widespread attention from global investors and policymakers. At the same time, China's research and development in the field of cryptocurrency seems to be relatively lagging behind, causing market concerns about its future competitiveness. In addition, whether Satoshi Nakamoto, the founder of Bitcoin, is threatened as the largest holder has also become the focus of industry attention.
U.S. spot Bitcoin ETF flows increased after the Federal Reserve cut interest rates on September 18. The latest data shows that U.S. Bitcoin ETFs have received inflows of more than $1.1 billion in the past week, setting the best revenue level since mid-July.
BlackRock, ARK 21Shares and Fidelity’s Bitcoin products led with inflows of $499 million, $289.5 million and $206.1 million, respectively. Invesco & Galaxy, Franklin Templeton, Valkyrie and VanEck Bitcoin products saw inflows between $5.7 million and $33.3 million, while the Wisdom Tree Bitcoin Fund recorded no inflows this week. The latest inflows bring the total inflows of all 11 spot ETFs since inception to $18.8 billion.
Since the rate cut, Bitcoin has surpassed $66,000. Currently, the cryptocurrency is only about 10% below its all-time high of $73,738 set on March 14. Now we are entering October and the fourth quarter of 2024. In the past nine years, Bitcoin has risen by 50% or more in the fourth quarter for more than five years.
This phenomenon not only demonstrates the market’s continued interest in Bitcoin, but also reflects the returning confidence of investors in cryptocurrencies. Data shows that this wave of revenue growth is mainly due to the increased participation of institutional investors, whose recognition and demand for Bitcoin have increased significantly.
At the same time, this wave of enthusiasm reflects the gradual maturity of Bitcoin as an investment asset. Many analysts believe that the booming development of Bitcoin ETFs will drive more traditional financial institutions to enter the cryptocurrency market, further promoting the mainstreaming of Bitcoin.
Globally, the application and development of cryptocurrencies are gaining momentum. As the world's second largest economy, whether China should accelerate its research and exploration of cryptocurrencies has become a hot topic in the industry. Although China has taken relatively strict regulatory measures on cryptocurrencies in the past, with the changes in the global financial market and the successful case of Bitcoin ETF, China may need to re-examine its cryptocurrency policy.
Experts believe that China can increase its research and development of cryptocurrency technology under the premise of safety and compliance. By exploring the application of blockchain technology and the regulatory framework of digital currency, China can not only better integrate into the global cryptocurrency market, but also lay the foundation for future financial technology innovation.
In this regard, the former Chinese Finance Minister said that the market demand for digital currency still exists, which makes it necessary for China to carry out relevant research as soon as possible to maintain its competitiveness in the global cryptocurrency field. He stressed the importance of studying the risks and innovations of the digital economy, especially considering that the US financial market has accepted cryptocurrencies. Chinese policymakers need to pay close attention to the shift in international views on crypto assets. The latest international changes and policy adjustments are crucial to the development of the digital economy.
It is worth mentioning that with the booming development of Bitcoin ETFs, Satoshi Nakamoto's status as the founder and largest holder of Bitcoin seems to be changing quietly. Satoshi Nakamoto holds about 1 million Bitcoins to date, and this huge asset makes him a pivotal figure in the field of cryptocurrency. However, with the popularity of ETFs and the increase in the circulation of Bitcoin, whether it will have an impact on Satoshi Nakamoto's holding status has become a concern for industry insiders.
Some analysts believe that the growth of ETFs may lead to a greater degree of decentralized holdings of Bitcoin, thus forming a new market structure and weakening Satoshi Nakamoto's absolute control. However, there are also views that Satoshi Nakamoto's Bitcoin holdings still have a significant impact on the market, especially when the market is volatile.
Of course, even if the holders are dispersed, Satoshi Nakamoto is still a symbol of the founder of Bitcoin. His pioneering contributions in the field of blockchain technology and digital currency are irreplaceable, and his influence will not be weakened by the development of ETFs.
Looking ahead, as the cryptocurrency market further develops, the success of the Bitcoin ETF will pave the way for the financial productization of other crypto assets. If China can take a more active stance in the field of cryptocurrency, it will not only protect the interests of domestic investors, but also enhance the country's voice in the global cryptocurrency market.
In general, as the global attention to cryptocurrency continues to rise, the layout of various countries in terms of policies, research and technology development will play a key role in the development of the entire industry. In the future, competition in the field of cryptocurrency will become more intense, and how countries around the world respond to this change will largely determine their position in the future digital financial ecosystem.
