Courtesy: Will Clemente, James Van Straten, and Crypto Slate
The chart above shows the price of gold after GLD (the gold ETF) was launched. As you can see, as GLD was launched this lead to the price of gold to skyrocket.
For many investors who did not have access to a physical gold supplier or did not have the financial means to invest in actual physical gold GLD was their opportunity. We are going to see the same for Bitcoin.
Bitcoin was the best performing asset of the 2010s and continues to dominate. What started as an asset valued to be less than a dollar now has gone up $45,000+. The ROI has been 13,000+%!!!!!
Clearly for the average joe/jane $45k is too much money. But the Bitcoin ETF will give the opportunity for the average joe/jane to invest in Bitcoin. This is going to boost the value of Bitcoin just like GLD did for gold.
As I have written before there are a lot of catalysts for Bitcoin. As I wrote before sovereign Central Banks are cutting their Dollar holdings for Gold. Major commodity exporters are already going away from the Dollar to local currencies. This is going to be a major boon for reserve assets like Gold and Bitcoin.
We are also headed towards epic demand for electricity. Thanks to the 4th industrial revolution, which include EVs, AI, Cloud Computing etc electrification will be key for national prospertiy, as show below.
Courtesy: Kathleen Tyson and Luke Gromen
Electrification and cheap ways to produce high energy (*ahem* nuclear) are also going to give a big boost to Bitcoin mining.
Overall, Bitcoin is finite and has helped many citizens in inflation-affected nations like Argentina, El Salvadore, and Turkey fight the fiat cabal. As the demand for Bitcoin ever increases, an ETF is going to increase the opportunity for many new investors to enter the market. This ETF will also give institutions the green light to get into Bitcoin. This maybe the year of Bitcoin.
This is just my analysis written for educational purposes. None of this is investment advice. Please sign up and if can provide monetary support so that I can continue to produce high quality research.