Bitcoin ETF – market gamechanger. Okay – Let me break down why the year 2024 is pivotal for Bitcoin. We’ll begin with ETFs and their influence on hashtag #Bitcoin. ETF, standing for Exchange Traded Fund, is a kind of regulated investment fund widely recognized in conventional markets. On 01/10/2024, marking Bitcoin’s 15th anniversary, the SEC (U.S. Securities and Exchange Commission) greenlit 11 distinct Bitcoin ETFs. This signifies Bitcoin’s foray into regulated arenas. Now, one can purchase a portion in “iShares Bitcoin Trust” (IBIT), a Bitcoin ETF managed by BlackRock, on the NASDAQ. Simply put, NASDAQ now offers a pathway to Bitcoin investment.
Bitcoin ETF Acceptance and SEC Influence
The significance? There are several facets. The SEC wields considerable global influence, and its sanction of ETFs heralds Bitcoin’s entry into the mainstream. In past years, Bitcoin’s classification by regulatory bodies, being a cryptocurrency, was ambiguous. This is no longer an issue. Formally and legally, Bitcoin is now deemed a secure asset.
Public and Technological Accessibility to Bitcoin
The general public begins to embrace Bitcoin. Bitcoin and other cryptocurrencies can be intricate technologies. Presently, individuals from all walks of life, including those less tech-savvy, can partake in Bitcoin investment via ETFs. This development lowers the barrier to entering cryptocurrency investments. Bitcoin’s track record over its 15-year lifespan is noteworthy. Average investors can now augment their portfolios with Bitcoin without dealing with its technological complexities. While direct ownership of Bitcoin remains an option, holding an ETF spares you the technical details – you’re essentially investing in Bitcoin indirectly. The Bitcoins are held, safeguarded, and administered by institutions, while you hold a secure, regulated share of the ETF.
Institutional Investment and Market Impact
Big players are now investing in Bitcoin. For example, MicroStrategy, a major player in the Bitcoin arena, possesses around 189,000 Bitcoins. Yet, BlackRock’s IBIT ETF has amassed over 11,000 Bitcoins. Notably, BlackRock also holds approximately 3.3% of Coinbase, the leading U.S. crypto exchange. The ETF’s growth is likely to boost both demand and the value of Bitcoin.
Bitcoin ETF in Essence
Bitcoin ETF – market gamechanger. Bitcoin ETFs don’t directly alter the technology but significantly reshape the Bitcoin market. On its initial trading day, the turnover for Bitcoin ETFs surpassed $4.6 billion. With over 19.5 million Bitcoins already in circulation and just about 1.5 million left to mine in the coming decades, demand is on the rise while supply diminishes. ETFs pave the way for both institutional and public investment in Bitcoin. Stay tuned for more insights on blockchain.
I design and build enterprise IT solutions based on blockchain technology.
I am blockchain architect in Trans.eu building ECMR (digital CMR Consignment Note) based on blockchain. I teachabout Bitcoin, blockchain and decentralization via Linkedin and blog: https://mobycrypt.com.