Billionaire and BitMEX co-founder Arthur Hayes recently highlighted that a successful spot Bitcoin (BTC)-based exchange-traded fund (ETF) could trigger a major capital shift, with a potential billion-dollar migration coming from the market. of Traditional Finance (TradFi) for the cryptocurrency industry.

Hayes notes that currently, Bitcoin price discovery typically happens on Eastern exchanges, however, ETFs are not traded on these cryptocurrency exchanges, which creates arbitrage opportunities for Western exchanges with less liquidity.

“For the first time in a long time, Bitcoin markets will have a predictable and long-lasting arbitrage opportunity. Hopefully, billions of dollars of flow will be concentrated in a one-hour period on exchanges that are less liquid and follow the prices of their larger eastern competitors.”

Hayes also highlighted his belief that for “trading opportunities to last a long time and allow arbitrageurs to execute them in sufficient size, the Bitcoin Spot ETF complex must trade billions of dollars worth of stocks every day.”

“On Friday, January 12, total daily volume reached $3.1 billion. This is very encouraging and as the various fund managers begin to activate their vast global distribution network, trading volumes will only increase. With a liquid way within the TradFi system to trade the financial version of Bitcoin, money managers will be able to escape the terrible returns that bonds now provide in this global inflationary environment.”

It is worth remembering that, last month, Arthur Hayes, shared a prediction about a possible “destruction” of Bitcoin (BTC) following the launch of the Bitcoin spot exchange-traded fund (ETF).

In his prediction, shared in a recent blog post on December 22, Hayes highlighted that the market’s largest cryptocurrency would be completely destroyed if “ETFs managed by TradFi asset managers were too successful.”

At the time of publication, the price of Bitcoin was quoted at US$42,695.64, up 0.3% in the last 24 hours.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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