The ECB executives agree that the expectation of spot ETF approvals drove the price of Bitcoin, but they believe it could turn out to be “a flash in the pan.”
The European Central Bank (ECB) has reiterated its anti-crypto stance despite market optimism. The institution is unconvinced by the latest spot Bitcoin exchange-traded fund (ETF) approvals by the United States Securities and Exchange Commission (SEC).
On Feb. 22, Ulrich Bindseil, the Director General of the ECB’s Market Infrastructure and Payments division, and Jürgen Schaaf, an adviser to the same division, published a post on the ECB’s official blog. The blog post’s headline speaks for itself: “ETF approval for Bitcoin – the naked emperor’s new clothes.”
The authors disagree with the claim that the approval of spot Bitcoin (BTC) ETFs in the U.S. confirms that BTC investments are safe and the preceding rally was “proof of an unstoppable triumph.” The fair value of Bitcoin is still zero, the bankers state:
