Simply Bitcoin: Fidelity Rumored to File Bitcoin ETF
Cryptocurrencies have been hit hard. Last year saw a major correction. Some cryptos have dropped more than 90 percent from their highs. And at their peak, the big-name cryptos lost more than 65 percent.
Now, just as prices were starting to recover, the SEC has gone after cryptocurrency brokers. That’s led to more uncertainty across the space. And it will delay a recovery in crypto prices.
However, there are some positive trends out there as well, which bode well for long-term buyers today. The biggest is that both BlackRock and Fidelity have announced plans to launch a bitcoin ETF.
While bitcoin ETFs have been rejected by regulators so far, the launch of one would allow for an easy way to invest in bitcoin.
And bitcoin has been largely ignored by regulators, as it is decentralized. In contrast, the SEC has gone after crypto tokens that are highly centralized and prone to potential changes at any time.
The approval of a bitcoin ETF would open up capital for long-term investors to play the trend in bitcoin via the convenience of the stock market. And it would also likely lead to crypto ETFs that hold other cryptos as well. Fidelity in particular could see a huge benefit, as they’re a major player in retirement and 401(k) plans.
The potential to open up retirement accounts to crypto could lead to a massive inflow of cash. And that could help kick off the next bull market.