Arthur Hayes Predicts Bitcoin Spot ETF Will Be Present In The Asian Region

Arthur Hayes, the former CEO of Bitmex. (Photo; Doc. Crypto Economy)

JAKARTA - Exchange-Trad Funds (ETF) Bitcoin spot was officially approved by the US Securities and Exchange Commission (SEC) on January 10. Bitcoin Spot ETF is an investment product that allows investors to get exposure to Bitcoin price movements without having to own or store these digital assets directly.

One of the crypto figures, founder of the BitMex crypto exchange, Arthur Hayes, shared his views on the recently approved impact of the Bitcoin Spot ETF. According to him, the investment product will put the price of BTC down and enter the bearish market.

Furthermore, the Chief Investment Officer of Maelstrom and former CEO of BitMEX added that bearish sentiment (decreased) against Bitcoin in January, anticipated a brief correction of up to 30%. At the time of writing, the price of Bitcoin was around $40,000 (Rp 625 million) per coin, down from its record high above $69,000 in November 2023.

In a recent post on Tuesday, Hayes discussed Bitcoin's appeal to investors, citing market imperfections and uncorrelated behavior with traditional assets as a key factor attracting billions of dollars in capital from a wider financial market. As one of the early Bitcoin traders, Hayes highlighted the potential of Bitcoin spot ETFs for new trade opportunities.

Arthur Hayes predicts the emergence of spot ETF products in the main Asian market, especially in Hong Kong, to meet "flows from southern China." He also outlined that crypto regulation and exchanges in the region have the potential to encourage market expansion. That way, spot bitcoin ETFs can provide favorable opportunities for traders and investors.

In addition, Hayes envisions significant growth in the ETF-based financing sector as Bitcoin trade increases in the coming years. Financial institutions may establish an institution that provides fiat loans based on Bitcoin's ETF assets, leverages spreads and affects Bitcoin's interest rate, thus introducing further market imbalances.

As a related development, Hayes, which expressed bearish sentiment towards Bitcoin in January, anticipated a brief to 30% correction in price. This sentiment is in line with the views of a number of other traders, who had hopes that prices could fall to $38,000 (Rp 593 million) before the start of the next bullish trend.