The first US Bitcoin ETF will start trading tomorrow morning in the stock market. While this is a future ETF and not a direct ETF, I believe this could be the catalyst that sends us to 100K and beyond. Let’s talk about why.
While there have been trusts in the US and there have already been ETH and BTC direct ETFs here in Canada, the US had previously been slower to adopt crypto ETFs. But now with ProShares getting the first crypto related ETF in the US, they are setting a precedent for future ETFs to get approval as well.
While a futures ETF is much riskier than investing directly into the asset, it’s still a great start from a regulation standpoint. That being said, I don’t think it’s a good investment and you should always buy crypto directly unless you get some benefit from investing through the stock market like we do here in Canada with a tax-free savings account.
Why this is a big deal though is because this will bring a lot of new money into Bitcoin, this will open the gates for many more ETFs and significantly more money to come in, and most importantly, it will likely get us past the previous all-time high for Bitcoin.
I believe once we pass Bitcoin’s all-time high, we will see the huge run up we have been waiting for this year in line with the Bitcoin halving cycles and the stock to flow model.
I will be following this all very closely and am prepared to sell a large portion of my portfolio. For the past 4 years I have been based my investing strategy largely around the halving cycles. The only concern is that this could be treated as sell news. However, I think it’s much more likely to be a buy event given the amount of money that will come in from people investing in the ETF.
My recommendation for the next little while is to be very vigilant and to have written out your exit plan strategy and to stick to it and do not let your emotions get in the way. Depending on your timing, it could be the difference of a huge chunk of your portfolio. Remember the last run up in 2017 went from $1,000 to $20,000 during that year, but the majority of the run happened within a small timeframe going from around $8,000 to $20,0000 in under a month. These run ups happen fast and end fast, so be paying attention.
Do you have an exit plan for crypto? What price do you aim to sell at? Has Bitcoin hit its peak for 2021? Where is the crypto market headed? Let me know what you think about this in the comments below and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*