Former CEO of BitMEX, Arthur Hayes, believes that a Bitcoin ETF could present traders with new opportunities in arbitrage, options, and financing.
“The pricing within the Bitcoin market predominantly takes place on Binance. This implies that we will experience a foreseeable, long-term arbitrage opportunity for the first time in a while… Well, at least if billions of dollars are transferred within an hour to less liquid exchanges compared to their competitors in the East,” he states.
Hayes predicts that spot ETFs will emerge in prominent Asian markets such as Hong Kong, which would cater to the “flow of funds into southern China”. He adds that if successful, spot cryptocurrency ETFs in the US could attract capital back from the East to the West.
However, Hayes believes that products like Bitcoin ETFs will be developed as inflation continues to rise. He also thinks that inflation itself will increase due to geopolitical tensions.
According to a cryptocurrency enthusiast, the bull market is just starting. While 2024 may be volatile, financial markets will reach new all-time highs by the end of the year.
“In the name of Lord Satoshi,” Hayes concludes his essay in his customary fashion.
In a previous statement, Hayes claimed that the price of the world’s first cryptocurrency will decrease by at least 20-30% in March 2024, regardless of its future level. He attributes this to US monetary policy. Following March 20, BTC will regain its upward trajectory. This is the day when the US Federal Reserve System (FRS) will announce projections for changes in the key interest rate, which is currently being prepared by the Open Market Committee.
Hayes also argues that Bitcoin-linked ETFs could be advantageous for the US political elite, despite their aversion to cryptocurrencies.