Major cryptocurrency exchanges like Binance, Bitget and OKX which have high proof of reserves are seeing the dollar value of their reserves increase as the price of Bitcoin rises. These exchanges publish periodic proof of reserves to provide transparency to users that they hold sufficient cryptocurrency reserves to cover user balances. As the value of their Bitcoin reserves increases, the dollar value of their proof of reserves also rises.
The rise in the price of Bitcoin is a good thing for everyone or institution that is hodling Bitcoin. No doubt some exchanges are transparent in the manner they run the business. But it is also important to state that some exchanges might not hold the amount they claim they have. Some of them publish incomplete or even doctored financial statements just because they want to prove to customers that they are healthy. It will be better to keep your funds in a non-custodial wallet than on centralized platforms.
The launch of spot Bitcoin ETFs provides an easier way for mainstream investors to gain exposure to Bitcoin. This has driven up demand and positively impacted Bitcoin's price. Traders can follow the flows into these ETFs and the resulting price movements to identify opportunities to profit. The growth of spot Bitcoin ETFs signifies increasing adoption and validation of Bitcoin as an investable asset class.
What is your best way to capitalize on this, and do you think spot Bitcoin ETFs will also have impact on other traditional financial systems?
Bitcoin ETF has attracted more institutional financing to the Bitcoin ecosystem and we can see the impact on the price of Bitcoin. More banks have begun to offer crypto-related services such as custodian, exchange, and other offers. In the future, we might see more banks invest more in Bitcoin and as well as offer wider services. Some banks might start accepting Bitcoin as collateral for loans because of the currency's influence in the global financial system. Very soon bank customers might be given options to receive payment in fiat or cryptocurrencies due to the fast adoption of Bitcoin by some major institutional investors.