The New York Times Is Still Struggling to Grasp Bitcoin
Jeff Sommer, a regular finance columnist for The New York Times, appears to have reservations about Bitcoin ETFs, but the market's enthusiasm tells a different story.
While specific figures aren't readily available, recent data indicates that investors injected at least $1.9 billion into these new crypto-tracking exchange-traded funds within their first three days of trading. Optimistic estimates even predict potential inflows of up to $100 billion into Bitcoin funds by year-end.
This surge surpassed the previous record of $1.2 billion in three days in 2021, which also involved a bitcoin-based product, ProShares Bitcoin Strategy ETF, tracking bitcoin futures rather than its spot price.
Noteworthy financial firms like BlackRock, Fidelity, and Franklin Templeton have ventured into the Bitcoin ETF arena, with considerations for ether (ETH) funds as well.
However, Sommer seems skeptical, dismissing the trend as driven mainly by FOMO (fear of missing out). In his latest "Strategies" newsletter, he cites Bitcoin as highly speculative, challenging to categorize, and lacking an immediately identifiable economic function, echoing the U.S. Securities and Exchange Commission's anti-FOMO bulletin.
While FOMO plays a role in crypto investing, Sommer's characterization of Bitcoin as merely a speculative gamble with $800 billion on the line oversimplifies a complex landscape.
It's essential to take arguments seriously, even if one doesn't personally align with the beliefs of Bitcoin enthusiasts, to avoid crypto-skeptic peer ridicule or ostracization (FOMOO), as Jeff puts it.
Sommer does acknowledge the significance of blockchain technology underlying Bitcoin but questions its classification as a "currency" and draws a comparison to gold, emphasizing gold's historical cachet.
Yet, Bitcoin's appeal extends beyond FOMO, encapsulating a philosophical proposition of a global, stateless monetary network available to all.
It aligns with various political philosophies and serves as a symbol of empowerment amid growing corporate and governmental surveillance, rising economic inequality, and geopolitical concerns.
Moreover, Bitcoin's track record as one of the most successful economic investments cannot be ignored. The concept of "holding" advocates holding Bitcoin over the long term, considering its historical meteoric gains. Bitcoin ETFs facilitate broader retail and institutional access to BTC, catering to those holding for years or decades.
While Sommer points out alternative routes for crypto exposure, such as investing in crypto-related stocks, the unique aspect of owning an asset that cannot be seized adds a powerful dimension. Spot bitcoin ETFs, despite being a partial approximation, offer buyers a stake in Bitcoin without physically owning it.
In conclusion, the fervor surrounding Bitcoin ETFs goes beyond mere FOMO, reflecting a nuanced landscape of philosophical, economic, and symbolic considerations that contribute to the growing interest in these investment vehicles.
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