© Reuters
NEW YORK – The cryptocurrency industry is buzzing with the potential approval of the first U.S.-based Bitcoin exchange-traded fund (ETF), which experts believe could have a significant impact. mention the price of Bitcoin. The prediction comes as markets also prepare for Bitcoin’s fourth halving event, scheduled for early 2024, an occurrence historically linked to an increase in the value of the digital currency .
The approval of a spot Bitcoin ETF is expected to reshape cryptocurrency investments by offering retail investors improved trade execution and reduced fees. This development could challenge existing cryptocurrency exchange platforms, such as Coinbase, causing them to adjust their business models. Coinbase has begun diversifying its revenue sources, expanding into subscription services and other services beyond its traditional trading fee structure.
The introduction of a spot Bitcoin ETF is expected to attract new investments and provide easier access for individuals looking to participate in the cryptocurrency market. Not like tools other financial assets that provide indirect exposure to cryptocurrencies, such as derivatives or shares of crypto-related companies, the proposed ETF would allow direct investment in the coin itself digital currency.
As the next Bitcoin halving event approaches, there will be an important question surrounding the impact on miners. The halving will reduce the mining rewards they receive for validating transactions. It remains to be seen whether the reduced output will affect miners’ incentive to continue participating in the Bitcoin network. Monitoring how miners react as rewards dwindle will provide insight into the resilience of the Bitcoin network.
Reuters contributed to this article.
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