Bitcoin ETF might send Bitcoin prices to the moon

[AgnosticBoy]

Currently, Bitcoin costs about $37,000 per share. Can you imagine how much you would've made when Bitcoin was trading in the single digits when it first came out?! Now some experts are predicting that Bitcoin can skyrocket into the 100s of thousands of dollars. One big price catalyst is the pending approval of a Bitcoin ETF by some of the biggest American financial institutions, like Blackrock.

The largest asset management company in the world, BlackRock, has expressed interest in the cryptocurrency sector by filing an application for a Bitcoin spot exchange-traded fund (ETF).

A Bitcoin ETF is a financial product that allows investors to gain exposure to Bitcoin’s price movements without owning the cryptocurrency directly. Bitcoin ETFs track the performance of Bitcoin as an underlying asset.

One of its main advantages is that a Bitcoin ETF offers a regulated and well-known investment structure. It allows investors to track changes in the price of Bitcoin within the confines of established financial markets, while also gaining access to the ETFs’ liquidity and transparency.

Investors that purchase Bitcoin ETFs are, in essence, buying shares or units of the fund that uses Bitcoin as its underlying asset. The value of the ETF is intended to reflect Bitcoin’s performance, giving investors an alternative method to invest in Bitcoin without having to set up and maintain a digital wallet or use cryptocurrency exchanges.

Source: Cointelegraph

Why does all of that matter? What does it mean for Bitcoin prices?!
The introduction of a BlackRock Bitcoin ETF could have a significant impact on the cryptocurrency sector. Here are a few possible effects:

BlackRock’s participation in the cryptocurrency industry through an ETF may attract more institutional and retail investors. It could increase the legitimacy of Bitcoin as a form of investment and lure more conventional investors into the market.

An ETF would give investors a regulated and accessible way to get exposure to Bitcoin without buying and storing the digital currency directly. As demand for the ETF shares would reflect investor sentiment, this may increase Bitcoin market liquidity and affect its price.

The decision by BlackRock has also sparked a general market uptrend in the crypto sector. Positive news and developments from influential companies like BlackRock foster positive sentiment beyond BTC. As a result of investors looking to profit from the market’s rising trend, several cryptocurrencies have experienced price hikes and increased trading volumes.

The value of BTC has soared, reaching its highest point in a year, on the expectation that BlackRock would be able to overcome U.S. authorities’ long-standing opposition to Bitcoin spot ETFs. Optimism among cryptocurrency traders has increased due to BlackRock’s filing.

According to Eric Balchunas, a senior ETF analyst for Bloomberg, there is a 50% chance that BlackRock’s spot Bitcoin ETF will be approved. This forecast follows a comment by Elliott Stein, a senior litigation analyst for Bloomberg Intelligence.

Source: same as above

Buckle up!

 

[Taurinoss]

Absolutely, the journey of Bitcoin has been incredible, and those who got in early witnessed remarkable gains! The prospect of Bitcoin potentially reaching hundreds of thousands of dollars is exciting, and it's driven by various factors, including institutional interest and possible ETF approvals.For anyone looking to get into crypto or manage their investments, it's essential to stay informed and explore tools like an MPC wallet as a service. This can provide added security and convenience in handling your digital assets.As the crypto landscape evolves, it's a thrilling time to be a part of it.

 

[AgnosticBoy]

Bitcoin has just rammed through the $40,000 mark just in the last few hours.

As if it was right on cue, right after midnight!

"[Bitcoin spot ETF approval] window is officially January 5 to January 10," Bloomberg Intelligence ETF analyst James Seyffart posted to X.

"Really this means that any potential approval orders are going to come on either Monday, January 8, Tuesday, January 9, or Wednesday, January 10. Mark your calendars people."

The SEC is currently weighing around a dozen bitcoin spot ETF applications from some of the world's biggest asset managers, including BlackRockBLK +0.7% and Fidelity. Meanwhile, crypto asset manager Grayscale is working to convert its flagship bitcoin trust into a bitcoin spot ETF, scoring a legal victory that dramatically raised expectations that it will be successful.

"If [bitcoin spot ETF approval] doesn't happen in this window, either [SEC chair Gary] Gensler and SEC have gone nuclear [or] they just aren't ready and have somehow convinced Ark and 21Shares to withdraw their filing with some sort of future assurances," Seyffart said, referring to Cathie Wood's Ark and 21Shares' joint bitcoin spot ETF application, adding he and fellow analyst Eric Balchunas put this at a less than 10% chance.

One influential bitcoin and crypto investor has called the arrival of a long-awaited U.S. bitcoin spot ETF is a rare example of a "buy the rumor, buy the news" event, with it being regarded as a watershed moment for institutional bitcoin, ethereum, XRP and crypto adoption.

- Forbes

 

[AgnosticBoy]

Bitcoin has just rammed through the $40,000 mark just in the last few hours.

Make that $44,000 now! Click on chart to see bigger version.

Here's some good analysis regarding the recent rise from CNBC:

 

[AgnosticBoy]

Some very positive signs as the Bitcoin ETF deadline for approval (assuming the SEC doesn't delay making a decision) nears. The deadline for SEC to make a decision is on Jan. 10, 2 days from now! Bitcoin stock price is already shooting up.

Bitcoin price has broken through $47,000 for the first time since April 2022 as the deadline for the United States Securities and Exchange Commission (SEC) approval of spot Bitcoin ETFs draws near.

Bitcoin climbed rapidly from a price of $44,000 on Jan. 8, surging more than 6.5% in the last 24 hours and 177% over the last twelve months, to hit a year-to-date high at $47,284 according to data from CoinMarketCap.

Source: https://cointelegraph.com/news/bitcoin-price-rallies-past-47k-as-spot-btc-etf-deadline-approaches

 

[AgnosticBoy]

And it's official! Bitcoin ETF has been approved and might be available for buy or selling it as early as tomorrow. The reason this is a big deal is because institutions and big players might be hesitant to buy and manage Bitcoin on their own. Managing Bitcoin takes some technical know how. If Bitcoin is brought through an ETF, then asset management companies like Fidelity and Blackrock will hold and manage the Bitcoin for you. I expect a nice upward movement in the stock price for Bitcoin in the following days to come.

(Reuters) - The U.S. securities regulator on Wednesday approved the first U.S.-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world's largest cryptocurrency and the broader crypto industry.

The Securities and Exchange Commission said it approved 11 applications, including from BlackRock (BLK.N), Ark Investments/21Shares (ABTC.S), Fidelity, Invesco (IVZ.N) and VanEck, despite warnings from some officials and investor advocates that the products carried risks.

Most of the products are expected to begin trading Thursday, issuers said, kicking off a fierce competition for market share.

A decade in the making, the ETFs are a game-changer for bitcoin, offering investors exposure to the world's largest cryptocurrency without directly holding it. They provide a major boost for a crypto industry beset by scandals.

- Reuters

 

[jaredbossbuster]

The Bitcoin ETF approval is a game-changer. As someone who's navigated the intricacies of managing Bitcoin, I get how it can be a tech challenge. With institutions now in the mix, there's real potential for a bullish run. For anyone diving into this, just a personal tip—consider tools like Cryptomixer for added privacy in your crypto transactions.

 

[AgnosticBoy]

Interestingly, the price of Bitcoin has not skyrocketed as much as anticipated after the Bitcoin ETF approval. That could mean that it hasn't done so yet. It took several years for the price of gold to skyrocket following the approval of a gold ETF. If Bitcoin is digital gold, then perhaps it could also take several years to have the same effect. Some might argue less, but as it stands now, there has been no immediate increase in price following the ETF approval.

Here's some good perspective:

Spot Bitcoin ETF applications filed by major hedge funds and trillion dollar insituitons like Blackrock and Grayscale have fuelled expectations for Bitcoin prices to hit a new all-time high.

To validate these expectations, crypto market analysts have been looking back as far as November 2004 first spot gold ETF, the SPDR Gold Shares, was approved for listing on the New York Stock Exchange.

The Gold ETF effectively allowed investors to gain direct exposure to the commodity without having to purchase a physical gold bar. The chart below illustrates how Gold prices reacted to the SPDR Gold Shares ETF listing.

According the chart above, the price of Gold (XAU) was $700 when SPDR Gold Shares rolled out the first Gold ETF ($GLD) in November 2004. Notably, by August 2011, the price of Gold had skyrocketed 254% to reach a new all-time high of $2,450.

Source: https://www.nasdaq.com/articles/gol...-first-etf-approval-is-bitcoin-btc-price-next

From the same Nasdaq site as above.. As you can see it was an 8 year bull run, as opposed to a short and sharp rise that some expected for Bitcoin (as some Youtube influencers were leading people to believe). Still a bull run nonetheless. Perhaps another financial crisis where the feds print more money will push more to Bitcoin.

 

[AgnosticBoy]

I said this in Nov. 2023:

Currently, Bitcoin costs about $37,000 per share.

I said this in Dec. 2023:

Bitcoin has just rammed through the $40,000 mark just in the last few hours.

On January 10, 2024, we got the Bitcoin ETF approval and I said that it would draw in more investors (increase demand) while the overall supply of Bitcoin remains the same. That combination would very likely drive up the price of Bitcoin. Fast forward to today, Feb. 28, 2024, now Bitcoin is over $60k/share.

 

[AgnosticBoy]

The all time high for Bitcoin was around $70k/token in 2021. Bitcoin rose above that price multiple times last week going into this week. Now it's staying above $72k. To put this into perspective, just last year, March 2023, Bitcoin was trading around $20k. Year later, it has increased by over $50k and is projected to go even higher!