Arthur Hayes, owner of Maelstrom Ventures and founder of BitMEX, believes there are market inefficiencies and a lack of correlation between Bitcoin (BTC) and traditional assets. The move could serve as part of a factor in attracting billions of dollars in capital from broader financial markets, it said in a Jan. 16 post.
Hayes, one of Bitcoin’s early prominent traders, said Bitcoin exchange-traded funds (ETFs) could create new trading opportunities for traders.
“Bitcoin is a global market, and price discovery primarily takes place on Binance, which is presumed to be based in Abu Dhabi. For the first time in a while, the Bitcoin market is a predictable, long-term arbitrage opportunity. “We’re going to get that,” Hayes said.
“Hopefully, billions of dollars of flows will be concentrated in an hour into the illiquid, highly price-tracking exchanges of the East. Expect to see spot arbitrage opportunities created.” I want to,” he added.
Mr. Hayes expects spot ETF products to emerge in major Asian markets such as Hong Kong, which deals with “China’s southward flow.” The existence of these highly regulated exchanges and native crypto exchanges can increase market inefficiency, thereby creating profit opportunities.
As Bitcoin trading becomes more common in the coming years, ETF-based funding may also grow. Banks could open desks offering fiat loans against Bitcoin ETF holdings, pocketing the spread and influencing Bitcoin interest rates, creating further market imbalances.
Meanwhile, Hayes said in early January that he was bearish on Bitcoin in the short term, saying the price would undergo a 30% correction. This is a view shared by other traders, who expect the price to fall to $38,000 before the next rally.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Arthur Hayes (CoinDesk)
｜Original text: Arthur Hayes Believes Bitcoin ETFs Could Bring in Billions From TradFi