ECB analysts affirm: Approval of Spot Bitcoin ETF holds no significance
Bitcoin’s recent approval for spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has not changed the European Central Bank’s (ECB) view on its value. In a blog post, Ulrich Bindseil, director general of market infrastructure & payments, and Jürgen Schaaf, adviser in market infrastructure & payments at the ECB, stated that Bitcoin’s fair value is still considered to be zero.
The ECB analysts rejected Bitcoin’s claim of being a decentralized digital currency and a lucrative financial asset. Instead, they highlighted the risks associated with Bitcoin’s resurgence, particularly in terms of society and the environment.
According to the ECB analysts, Bitcoin’s shortcomings as a means of payment and investment persist. They described it as “inconvenient, slow, and costly.” Despite attempts to promote its use, such as the government sponsorship in El Salvador, Bitcoin has not gained widespread acceptance as a successful means of payment.
To address the risks associated with Bitcoin, the ECB analysts called for stricter regulations. They identified concerns such as money laundering, cybercrime, financial losses, and environmental damage. Additionally, they emphasized that Bitcoin’s price level does not accurately reflect its sustainability or economic fundamentals, underscoring the need for vigilance in regulating the crypto market.
In January, the SEC approved multiple spot Bitcoin ETFs for listing on registered national exchanges in the U.S., including Nasdaq, NYSE: The New York Stock Exchange, and the Chicago Board Options Exchange. This approval followed a decade-long search for these products.
As the ECB continues to advocate for increased regulation in the crypto market, it is evident that they remain skeptical of Bitcoin’s value and suitability as a form of payment and investment.
