Simeon Hyman is a global investment analyst at Pro Shares. he is recently sat down to discuss The current state of the cryptocurrency market and what it thinks the future holds.
Simeon Heymann on Crypto State
Pro Shares is best known for launching the first official Bitcoin Exchange Traded Fund (ETF) last year. While the product has garnered a lot of criticism for being based on bitcoin futures rather than actual spot trading – the former is considered less stable than the latter – it has also garnered a lot of attention and praise for bringing the crypto space to a whole new level of legitimacy.
Describing the launch of the Pro Shares bitcoin ETF, Heymann said:
It was one of the most successful launches in ETF history, so that was a lot of fun. I have to say, I rang the bell and was on the floor of the NYSE but spent the day BITO was launched on the floor of the exchange that day – that was unique. The market reception was driven by the fact that it was a solution that had not existed before. It remains a bit of a challenge to this day to figure out how one can invest directly in Bitcoin. Do I need a wallet? Do I need a cold wallet? hot? warm? Will I lose my ride in the trash in my city and not be able to figure out how to access my bitcoin? What we have found since launch is that a bitcoin futures product has proven to be a better solution and proxy for spot bitcoin than people might expect.
In the past, Hyman has argued that bitcoin futures are a better reflection of overall cryptocurrency market sentiment. He discussed this again in his last interview, saying:
Volume matters, and the futures market turns out to be pumping out more volume than the largest US stock exchange. Volume is important because when you have a lot of trading, you have a lot of liquidity. This means that you have price discovery, and there have already been some academic studies that have shown faster price realization – turning information into price – faster in the futures market than in the spot market.
Unsure of the future
When it comes to whether the Bitcoin ETF spot trading will be approved soon, he simply doesn’t know:
It’s always the question people ask us, and we obviously don’t have a crystal ball as to where the regulators are going to go. Do we know exactly what the regulators are looking for? we do not know. We know today that there is a bit of chaos going on in the spot market (lender bankruptcies, potentially unseparated assets in bitcoin brokerage accounts) that will take some time to mature.
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