This week was all about the approval of the first approval bitcoin (BTC) linked exchange-traded fund (ETF). With the all-time high (ATH) that followed, bitcoin was again extensively in the news in the mainstream media. In Timo’s take of this week, I look back on a week with perhaps the most important development for the future of BTC.
Bitcoin (BTC) takes important step on the US stock market
Last Wednesday it was time; the very first bitcoin ETF was launched. It was a moment that the crypto community had to wait for a long time. And despite the fact that it is not a physical bitcoin ETF, we immediately see that the interest among traditional investors is high.
An ETF is a stock fund that is listed on a traditional stock exchange. It gives investors who prefer to conduct their business in the ‘regular’ way with their brokers the opportunity to gain exposure to bitcoin. They do not need to own any bitcoins for this, only the shares of the fund.
ProShare’s Bitcoin Strategy ETF launched Wednesday on the New York Stock Exchange Arca. The fund, which can be found under the ticker BITO, immediately attracted a huge amount of investment. So much so that on its first day, the fund outperformed any other ETF on its first day. A volume of more than $1 billion was achieved; the largest ‘natural’ volume on day one ever.
On day two, investors went keep on investing, with another trading volume of more than $1 billion. The fund also had more than $1 billion in assets under management after the second day. That took the gold ETF GLD three days. In short, the interest in the investment product and the underlying bitcoin is high!
More to follow, BTC to $100,000 in this cycle?
Yesterday, a second bitcoin ETF launched, that of Valkyrie. It is likely that the pending applications for bitcoin futures ETFs will meet little resistance from the Securities and Exchange Commission (SEC). So we have entered a new era where bitcoin is more readily available to even more investors as protection against inflation.
And what now? The big money is here and so you can say that we are on uncharted waters. The price expectations of the Dutchman PlanB seemed unattainable a few months ago. But with the new ATH, the current price and the outlook for inflation, a bitcoin price of $100,000 is certainly not impossible! Are you ready for the future yet?
Where will the top be, and where the average level? pic.twitter.com/pKYqtPX4CO
— PlanB (@100trillionUSD) October 22, 2021
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