Bitcoin will be under close US scrutiny even after ETF approval: Ed Yardeni
In an interview with CNBC-TV18, the President of Yardeni Research also discussed global financial trends, including the US Federal Reserve's interest rate policies and his preference between India and China.
Ed Yardeni, President of Yardeni Research, expects the US government to continue monitoring Bitcoin closely even after the US Securities and Exchange Commission, on January 10, approved the first US-listed exchange traded fund (ETF) to track the cryptocurrency.
"I think the government is kind of torn about what to do about Bitcoin. I think if they had their way they would prefer no cryptocurrencies at all. It's certainly a competition for the Fed, it certainly provides the payment system for illegal activities. And so I'm actually quite surprised that they've gone this far, in terms of, you know, basically saying, giving you their their blessings to to an ETF," he said in a conversation with CNBC-TV18.
US regulators for the first time approved ETFs that invest directly in Bitcoin, a move heralded as a landmark event for the roughly $1.7 trillion digital-asset sector that will broaden access to the largest cryptocurrency on Wall Street and beyond.
The Securities and Exchange Commission, whose three-part mandate includes investor protection, authorized funds from industry heavyweights BlackRock, Invesco and Fidelity to smaller competitors including Valkyrie to begin trading Thursday, January 11.
Yardeni also discussed global financial trends, including the US Federal Reserve's interest rate policies and the performance of Asian markets.
Also Read
He anticipates no rate cuts from the US Federal Reserve until the second half of the year, contrary to market expectations of four to five cuts starting in March. He reasons that the Fed is likely to maintain its restrictive stance to avoid fueling a resurgence in inflation, given the economy's resilience.
On the Asian markets, Yardeni notes a significant divergence between China and India. He points out that funds that might have gone to China are now flowing to other Asian countries, attributing this shift to China's poor economic performance and regulatory environment. In contrast, India's freer economy and young demographic make it an attractive alternative for companies moving away from China.
Yardeni also notes the trend of onshoring, wherein companies are increasingly moving away from China in search of more favourable environments. Many businesses initially ventured into China attracted by its vast market but faced challenges due to a restrictive regulatory environment.
According to Yardeni, the Chinese economy's struggles have reshaped global perceptions, indicating that China is no longer considered a must-have investment among emerging markets.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM