Tether CEO Paolo Ardoino predicted that Bitcoin would become increasingly integrated into traditional finance, with hedge funds, pension funds and corporations showing growing interest in the world’s first cryptocurrency.
Ardoino, who is also Bitfinex’s CTO, spoke Tuesday at an online event hosted by the exchange alongside Blockstream CEO Adam Back.
In a livestream, Ardoino said he expects more fund managers to be interested in adding Bitcoin to their portfolios after a spot Bitcoin exchange-traded fund is approved in the United States. Fund managers are increasingly interested in adding up to 5% of their portfolios in Bitcoin. , he also said.
Ardoino added that companies will keep Bitcoin on their balance sheets and that spot Bitcoin ETFs have provided legitimacy. To date, Tesla, Inc. Only a handful of companies are said to hold Bitcoin, including MicroStrategy Inc. and MicroStrategy Inc. CoinGecko.
“Now, every company can just add a little bit of Bitcoin to its balance sheet, and I think that will increase over time,” Ardoino said, citing political unrest as a potential reason to do so.
Ardoino’s comments come a month after the U.S. Securities and Exchange Commission approved the first spot Bitcoin ETF, which currently holds about $42 billion in assets.Includes Grayscale’s converted GBTC funds. Bitcoin BTC
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Its price has since risen to $56,000 as of Tuesday, its highest since November 2021. Attributed This is to find out the trading volume of Bitcoin ETF.
Future policy changes
Ardoino told the panel Tuesday that he believes policymakers and regulators will have to catch up for countries like El Salvador to catch up. hug Bitcoin over the years.
“This is exactly the Bitcoin ETF story,” Ardoino said. “At first, we ridiculed anyone who even talked about the possibility of a Bitcoin ETF, but when it eventually became a reality, suddenly everyone wanted to jump on the Bitcoin bandwagon and launch an ETF.”
In the United States, lawmakers are preparing legislation to create a regulatory framework for cryptocurrencies, particularly stablecoins, but the bill is still awaiting President Joe Biden’s signature. On the regulatory side, SEC Chairman Gary Gensler classified Bitcoin as a commodity to distinguish it from many other cryptocurrencies that are considered securities subject to securities laws.
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