BlockFills has rapidly emerged as one of the world’s leading crypto liquidity and technology providers. They equip their clients with cutting-edge technology, robust risk mitigation strategies, deep liquidity, 24/7 market access, and premium support, enabling them to safely launch or scale their digital asset businesses. This discussion between
John Divine (Execution Specialist at BlockFills) and Ivan Zhelev dives into various topics such as the Ethereum ETF, trading strategies, and the future of decentralized finance (DeFi).
Market Manipulation and Trading Strategies
The conversation begins with John explaining how manipulation remains the biggest issue with the digital assets market. This market manipulation is supposed to be regulated but it looks like the SEC is the ones that are actually manipulating the market. He believes that there are backdoor conversations that are happening that are affecting the market negatively. John also believes that crypto is becoming politicized in America and law makers are not looking at the facts, instead they are taking sides and making decisions based on political agendas.
After this point was made, the discussion turned towards the potential approval of an Ethereum ETF and the regulatory process behind it. Both John and Ivan believe that there is a high possibility of an Ethereum ETF being approved by the SEC in the near future but the current landscape is still uncertain. The SEC has delayed their decision multiple times and there is no telling when a final decision will be made.
“I don’t claim to be a regulatory expert, but this seems like such a scramble.” – John Divine.
John Divine further elaborates by explaining that there are many major entities that have applied for an Ethereum ETF. The only thing that’s stopping a flood of capital into the market is regulatory approval. But that doesn’t mean it’s time to start loading up on ETH. John believes that sometimes investors and traders need to step back and look at the bigger picture instead of getting caught up in short term news. There’s just too much power in the hands of regulators and it can have a significant impact on the market.
He advises crypto participants to stick to their ruleset and not get caught up in speculation. Rather than getting caught up in FOMO and trying to predict the market, he believes that it’s important to have a long term mindset when it comes to investing in crypto. Right now, he believes it’s a “Coinflip” when it comes to the probabilities of trading profits. Regulator insiders have the advantage right now and despite the potential inflows of an Ethereum ETF, the market could still remain volatile until a final decision is made.
Ethereum’s ETF Proposal and Potential
The idea of a potential Ethereum ETF has been gaining traction in the crypto community, with many Web3 proponents celebrating the potential influx of institutional capital that it could bring to the market. However, a barrier for this to happen is the lack of education and understanding around the technology and its potential use cases.
An Ethereum ETF would essentially be a stock that tracks the performance of ETH as an asset, providing investors with exposure to the crypto market without actually owning the underlying asset. The problem is that ETFs are a ‘traditional finance’ product and some asset managers may not be comfortable with the idea of investing in a technology that they don’t fully understand.
Nevertheless, if an Ethereum ETF were to be approved, it could potentially open up the market to a whole new level of mainstream adoption and investment. This could also lead to increased liquidity in the market and potentially stabilize some of the volatility that has been plaguing crypto markets. It also can ‘force’ regulators to have a better understanding of the technology and its potential impact on traditional financial markets. We’ve seen how major asset managers began doing serious research on Bitcoin as the approval for its ETF was in question.
“The biggest tailwind out of this entire scenario behind this ETF for both Bitcoin and Ethereum is education.” – John Divine.
Despite the “Scramble” as John puts it earlier in the interview, he sees this as a positive for the market. With more traditional asset managers and investors looking into cryptocurrencies, it could lead to a better understanding of the technology and its potential use cases. This could lead to increased adoption, development, and innovation in the space.
A Technological Revolution Redefines Finance
During the internet revolution, investors could allocate capital into the application layer (like websites and social media platforms) instead of investing in the underlying technology itself. For Ethereum, people can now invest directly into the protocol level. This difference presents a unique opportunity for investors to have an ownership stake in the infrastructure of the decentralized finance (DeFi) ecosystem. This can be a massive edge for everyday investors.
“We’re in the midst of a technological and financial revolution.” – John Divine.
Protocols such as Ethereum are responsible for the creation of decentralized applications (dApps) that are built on top of it. These dApps offer a wide range of services, from peer-to-peer lending and borrowing to decentralized exchanges and cross-chain communication. This allows individuals to have complete control over their assets without having to rely on intermediaries like banks or centralized institutions.
John continues by sharing that many institutions still see Ethereum as a speculative asset for the “Get Rich Quick” crowd. But that can soon change as they see the innovative technology behind the cryptocurrency. These institutions have a great opportunity to be at the forefront of this technological revolution by investing in Ethereum and other decentralized protocols. However, some more education is still needed by most institutions to fully understand the potential impact of this technology on the traditional financial industry.
“We’re completely shifting in real time from a decentralized model to a centralized model.” – John Divine.
Ethereum may be lagging behind Bitcoin in terms of market value, and general understanding but there is still demand to invest in this cryptocurrency. The decentralization of the financial system is becoming more and more appealing to individuals and institutions alike, as it offers a new level of security, transparency, and control. Despite the lag, John believes that the demand will skyrocket as soon as more people understand the potential of Ethereum. This will create an incredible opportunity for dApp developers to create innovative solutions for a vast and growing market.
Decentralized Incentives
Innovation is restricted in centralized systems because the incentives are limited to a select few. In contrast, decentralized systems operate on incentive structures that enable everyone in the network to benefit from contributing value. This creates a thriving community of developers, entrepreneurs, and users who are all working towards the common goal of improving the technology. John Divine believes that this incentive structure will ignite innovation in the financial industry and beyond, leading to a more efficient and equitable society.
This is made possible through the use of smart contracts, which are self-executing agreements that automatically trigger when certain conditions are met. These contracts can be used to facilitate secure and transparent transactions, as well as create incentives for participation in the network.
As dApps continue to become more user-friendly and more people understand how to use Web3, the adoption of Ethereum and other decentralized systems will continue to grow. And with that comes the potential for decentralized contribution and rewards, further fuelling the growth and innovation of these systems. We see this with
Hive Mapper where users can contribute data to build a new Google Maps competitor.
Even the internet is centralized in the hands of a few tech giants, but there are developers working on creating decentralized alternatives that will put control back in the hands of users.
PKT.cash is used as the example for creating a decentralized internet infrastructure, providing an alternative to traditional centralized ISPs.
Final Thoughts
BlockFills offers various services for institutional clients ranging from execution and hedging solutions, liquidity provision, mining, SaaS, and much more. As one of the leading B2B service providers in the blockchain industry, Blockfills is dedicated to bringing innovative solutions to traditional financial markets.
John Divine spoke passionately about his vision for a more equitable society through the use of decentralized systems and technology. But he also gets into Bitcoin’s value proposition. Manipulation of our financial well being by centralized authorities can be countered by the use of transparent and secure blockchain technology.
“You want to spend dollars and save Bitcoin.” – John Divine.
Inflation as a keyword on Google has spiked and this shows that people are starting to understand the implications of traditional financial systems and are looking for alternatives. John Divine believes that Bitcoin (and Ethereum) solves a lot of the issues people are facing with traditional financial systems, and Blockfills is here to help push forward that vision.
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