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As the US approves Bitcoin ETFs, the IMF Chief’s questioning of cryptocurrency emphasizes the mix of excitement and caution in the finance world.
While the recent approval of Bitcoin exchange-traded funds (ETFs) in the US has sparked excitement in the crypto world, the IMF chief expresses concerns. Georgieva suggests that cryptocurrencies should be regarded as assets rather than currencies, drawing parallels to money management funds.
HOT🤯👇🏻#IMF Chief Sees #Crypto as Asset Class — Says #Bitcoin Won't Dethrone US Dollar as Dominant Currency#Giám đốc IMF coi #Tiền điện tử là loại tài sản — Cho biết #Bitcoin sẽ không soán ngôi đồng đô la Mỹ với tư cách là loại tiền tệ thống trị pic.twitter.com/uc0ue9GtQG
— Phương Đông MMO (@Dong57205) January 16, 2024
These remarks come just before the US SEC approved new Bitcoin-backed ETFs, allowing companies like Ark and BlackRock to offer investment opportunities in Bitcoin without direct asset ownership.
While this marks a significant step for cryptocurrencies in the mainstream financial landscape, Georgieva remains cautious about their impact on traditional currencies, particularly the US dollar. She, however, believes that the possibility of cryptocurrency challenging the dominance of the US dollar is a distant future concern and not an immediate threat.
Contrary to Kristalina Georgieva’s concerns, experts such as Gautam Chhugani from Bernstein and Alesia Haas from Coinbase express optimism. They view the approval of Bitcoin exchange-traded funds (ETFs) as an opportunity for increased capital inflow into cryptocurrencies.
The recent dip in Bitcoin’s price to $42,700, reflecting a 6% decrease over the week since the ETF approval, is seen by some as a chance for investors to acquire assets at a discounted price. While the impact of these ETFs on Bitcoin and the broader crypto market is still uncertain, the positive potential of Bitcoin remains a focal point for certain market observers.
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