Why an ETF Will Launch Bitcoin to New Highs
Over the last several months we have seen bitcoin increase in popularity and the price exponentially increase as investors have decided to finally pay attention to the new asset. Much like a Satoshi cycle, when popularity of bitcoin increases, the price of bitcoin increases, thus provoking more people to pay attention and more money is pumped into the token, creating a chain reaction and cycle of life that keeps on churning. Not only are average joe’s taking cryptocurrency seriously but so are head honchos of businesses and Wall Street investors. Wall Street trader’s who were once skeptical about bitcoin are now salivating at their desks after CME announced it would offer bitcoin futures, an investment vehicle familiar to the wolf’s of Wall Street. After the futures announcement by CME, the price of bitcoin climbed to $7,000, once again demonstrating relationship between popularity, credibility and price.
The Birth of an ETF
As new investment vehicles are created we may see bitcoin soar higher than ever, as all speculators and investors will feel more comfortable and truly believe in the credibility and value of the digital currency. After the announcement of bitcoin futures the only next step to be made is an Exchange-Traded Fund (ETF). An ETF tracks the value of an asset or several assets and is tradeable during working hours of a stock exchange. ETF’s will provide investors to hold bitcoin for the long term and allow day traders to speculate on the asset’s value as it changes throughout the day. An ETF will once again provide a FAMILIAR vehicle for investors allowing them to feel more comfortable. With an ETF, bitcoin will appear to be far more attractive and a lot less risky.
Although the time was ripe when the Winklevoss twins attempted a bitcoin ETF, times have changed and bitcoin has grown up to something we all should take seriously. Bitcoin hangs with the best of them and don’t be surprised to see investors come out of their shells as the token is taken more seriously. Bitcoin is still young and has plenty of growing to do, pay attention to the market but understand with credibility and popularity, the life span of bitcoin rolls on and makes a valid case as to why it may never leave.