Curious what a physically backed ETF might mean for Bitcoin?
Bitcoin is likely on the verge of getting an ETF or ETP trading in the very near future.
Bitcoin began rallying several weeks back on rumors that the latest ETF proposal by VanEck and the CBOE might have the "right stuff" for the SEC.
Numerous ETFs have been proposed over the last 8 years, but none of them have been approved by the SEC.
However, by responding and adapting to what the SEC has said are concern's of theirs, the VanEck proposal seems to answer just about all of those concerns, which is what has people excited about this proposal.
The odds of approval just got a little bit worse.
A few days back, as bitcoin was still enjoying it's nice 40% rally off the lows, news broke that the SEC rejected the Winklevoss ETF application.
As you might have guessed, the news put a damper on the market and likely contributed to the recent pullback off those highs down to our current level of $7,500.
Most seemed to miss that the Winklevoss ETF application was very different than the VanEck application and was not expected to pass anyways.
Irregardless, many see the Winklevoss rejection as a good indication that the VanEck application likely has less of a chance of being approved than originally thought.
Probably rightly so.
In my opinion, the VanEck ETF proposal likely gets rejected as well, though I think we do see a bitcoin ETF approved within the next 6 months.
Which means, even if this one gets rejected as well, one is likely coming in the near future.
Given all of that, what might an ETF approval mean to the price of bitcoin?
Well, considering that bitcoin is often compared to gold, lets take a look at what happened to the price of gold when ETFs were introduced on it:
The price of gold was basically flat for years until ETFs were introduced in 2003/2004.
Over the next few years, the price went up 5X.
I am not saying that bitcoin will behave exactly the same way, but given the fact that many people cannot or do not feel safe investing in bitcoin currently, an ETF would open the doors to a lot more money.
A similar reaction to that seen in gold would take prices up near $40k-$50k.
Stay informed my friends.
Image Source:
https://ethereumworldnews.com/expert-contradictory-opinions-btc-etf-importance/
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bitcoin seem no more hope
Give it some time.
Be patient my friend.
As per the news and papers bitcoin has died more than 10 times but surfaced again and again.
Wait for the time
The world needs to adopt new ways to enter the crypto era in 21st century as they have adopted to the industrial era 18th century..
Make way for the crypto💰
That and banks want to make money. Lots of interest in bitcoin right now. Any bitcoin product would be heavily traded.
Right brother, plus the goverment also makes a lot of profit but despite its economic benefits, most of the nations put a ban on the circulation of virtual currencies like the Bitcoin.
I am not sure about all of that, but I am hopeful that prices go a lot higher.
I fully trust the bitcoin currency if it goes down no matter the market adapts to it constantly is the future greetings and my respects my support with my vote
Very well written, I think BTC will bounce soon. Just recent okex fud that's keeping the price down.
It seems there is FUD every where you look, at all times.
I would really like to see this physically backed bitcoin ETF.
Because i like to see the laws of physics squirm.
Haha you and me both.
@jrcornel ETF is one of the major turning point in the crypto history. If this happened then above mentioned target easily achievable.
Thanks for sharing the update.
Cheers!!!
If it doesn't happen during this calendar year, bitcoin may struggle to hold even the current levels to be honest.
Yes, as always, honesty is much-appreciated. Falsely hyping stats can really work negatively for crypto long term.
Best regards.
Peace.
To me it looks like bitcoin is just waiting for a catalyst to have a moon shot. The problem is that we may not get that catalyst for a few months yet.
ETF is a thumbs up!
Yes it is.
@jrcornel: you're one of my favorite persons to follow (and learn) about bitcoin related news. As such I appreciate your positive, but realistic tone, concerning cryptocurrency. Please consider providing your opinion about this specific news in a new article -> https://www.ccn.com/breaking-worlds-biggest-stock-exchange-operator-is-launching-a-bitcoin-market/
Thank you.
Thank you for the kind words, and sure thing I will take a look.
We might be just few days away i guess to witness the history rewritten once again