In a unique perspective, former BitMEX CEO Arthur Hayes discussed the potential impact of spot Bitcoin exchange-traded funds (ETFs) in the US and how it could affect the first cryptocurrency. He highlighted how Bitcoin differs from other assets, as its existence relies on the activity of traders and investors within the network. Hayes emphasized that Bitcoin’s security and existence will depend heavily on its continuous movement, especially after 2140 when the block reward reaches zero. If Bitcoin loses its circulation, the security of the network could be compromised, leading to its collapse.
Hayes also expressed concerns over large traditional finance firms entering the crypto space. These firms tend to accumulate assets without actively using them, potentially causing issues if they hold the majority of circulating Bitcoin. He believes that if people opt for Bitcoin ETFs instead of holding and using the actual coins, the network could face serious problems, eventually leading to the emergence of a new cryptocurrency network. Consequently, Hayes emphasized the importance of maintaining Bitcoin’s user activity and preventing it from becoming a government-controlled financial asset.
Furthermore, Hayes recently made an interesting prediction, stating that stronger economic ties between Russia and China could contribute to Bitcoin’s growth. He forecasted that the value of the cryptocurrency could potentially reach $760,000 in the coming years.
Sophie Berger covers EU regulation and policy from Brussels. With a Master's in European Affairs from Sciences Po and five years at Politico Europe, she tracks MiCA implementation, ECB digital-euro work and ESMA enforcement. Sophie is fluent in French, German and English, and has interviewed three EU commissioners on record. Her policy briefs are read across the BTCNews newsroom every morning.
