Simply Bitcoin: The Bitcoin ETF Will Take Bitcoin to $1 Million
After months of speculation, the Securities and Exchange Commission (SEC) approved trading of 11 bitcoin ETFs last week. These ETFs have already started to see billions of dollars in inflows and trading.
It’s easy to see why. Cryptocurrencies have been a new asset class, and haven’t been easily tradeable for investors since its inception. And unlike the creation of other assets, cryptos started at the individual level, not the institutional one.
Retail investors able to navigate the process of buying crypto have been able to get in before this institutional money.
Big financial players have largely had to sit on the sidelines. But the bitcoin ETFs now allow them to allocate money to this asset class. And even a small allocation of 2 percent could still represent billions of dollars in demand.
That’s one big reason why institutional adoption looks so bullish for investors. And why some investors, like Ark Invest CEO Cathie Wood see bitcoin hitting $1 million by 2030.
While bitcoin saw a slight jump with the start of ETF trading, the price action has been slow so far. But bitcoin will have another “halving” event in the coming months. That will reduce the reward for mining new bitcoin by half.
Prior halvings have led to price shocks higher. With this year’s rising demand, a reduction in new supply could lead to big returns for those who look to buy now.
