According to Blockworks, Van Eck CEO believes that politically-motivated rate cuts could coincide with the bitcoin halvening, as well as potential spot bitcoin ETF launches, making for a very exciting spring for crypto investors. He states that the Federal Reserve is nearing the end of its tightening cycle, and if one is cynical about the election, they would want at least six months for lower rates to kick in. Van Eck also sees movement at the US Securities and Exchange Commission (SEC) regarding potential spot bitcoin ETF approvals, where there was no movement until a month ago. He points to the SEC's recent approval of ether futures ETFs as a potential model for spot bitcoin ETF applications.
Van Eck suggests that the approval of spot bitcoin ETFs is more symbolic than anything else, but it is important because everyone thinks it is important. He also believes that spot ETF products hold an advantage in that they are super tax efficient for Americans when compared to futures-based products. In addition, he says that bitcoin has now been established as an alternative to demand for gold as a store of value. With the Fed changing its policy, the halvening, and other uncertainties, Van Eck sees a perfect setup for a trade in the market.
However, Van Eck also notes that the market never seems to price in the halvening, which always leads to a bull market. He questions why people do not anticipate this and concludes that there is no accounting for the crowd.
