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The US Securities and Exchange Commission is deciding whether to allow Bitcoin funds. Approval would be historic, but also risky.
The story is told like in a film: Exactly 15 years ago, an unknown computer scientist gave the starting signal for today’s best-known digital currency: Bitcoin. If you had invested just a few dollars back then, you would have millions today.
The first products that were paid for with Bitcoin were two pizzas – for 10,000 Bitcoin. Today that would be equivalent to over $400 million.
An unknown person created Bitcoin
The cryptocurrency was launched in 2009 by Satoshi Nakamoto – a pseudonym. Who is behind it is still unknown today. His invention, however, achieved worldwide fame and experienced ups and downs.
The Bitcoin price reached its all-time high of almost $69,000 at the end of 2021. And a year later it dropped to just over $16,000. Despite numerous fraud scandals, the price is now rising again and has more than doubled in the last year.
Legend: After its all-time high in 2021, the Bitcoin price fell to just over $16,000. Now it is rising sharply again. SRF
The Bitcoin price is likely to rise much higher in the next few days. The reason: The US Securities and Exchange Commission’s upcoming decision on whether it wants to allow Bitcoin funds. “It is mainly the large asset managers who, interestingly enough, were skeptical for a long time. Like Blackrock, for example. “You want to earn money now,” says SRF stock market correspondent Jens Korte.
Cryptocurrencies are a billion-dollar business. «More and more potential customers have expressed interest. “If we say yes now, it could mark a historic point in which cryptocurrencies become an integral part of our financial system,” said Korte.
Approval involves a lot of risk
Bitcoin would then not be traded directly, but rather through funds, so-called ETFs. If ETFs are approved, this is likely to attract even more investors, which in turn could drive up the Bitcoin price. Approval would be historic, but would also involve a lot of risk.
Legend: In 2009, the cryptocurrency was launched by Satoshi Nakamoto – a pseudonym. srf
“If cryptocurrencies suddenly become an integral part of our financial system, then they will also become systemically important. Let’s remember the financial crisis of 2008: If something goes wrong, the public has to pay for the damage. And cryptocurrencies are extremely susceptible to fluctuations,” says Korte.
16 years ago, the financial crisis triggered a global chain reaction that almost brought the banking system to a standstill and cost millions of people worldwide their jobs. In Switzerland, UBS had to be rescued with 60 billion francs from the federal government and the SNB.
According to experts, the chances of Bitcoin funds being approved are good. The American licensing authority must make its decision within a week at the latest.