It's showtime!
Months ago I predicted something was going to happen. It just did. After a decade of denials the SEC just approved spot-ETFs. Not just one of them, but eleven. Large financial institutions sense a gold-rush with these products and want in on the action. Leading the way is the world's biggest private finance company, BlackRock.
A "spot-ETF" is a financial product offered by companies to investors. It's a means for investors to benefit from Bitcoin without actually owning Bitcoin. Investors buy shares in a fund set up by the financial institutions which hold the crypto (usually with the help of sophisticated crypto exchanges, like Coinbase). When the price of Bitcoin goes up, the value of ETF shares go up. The two mirror value allowing investors to participate in crypto market gains without having to create a digital wallet, maintain its securely, sell coins, etc. People can just call their normal stock broker and say "buy Bitcoin!" The broker's company handles the hard stuff.
A flood of new investment money is expected to flow into the crypto market. Under the economic principle of supply and demand this pushes price up. So hang on, here we go!
I really hope it happens as I know how you've tied your wagon to this train.
ReplyDeleteSuzanne
Well, yes and no. I've made arrangements to be okay either way. Of course I'd enjoy extra money (and that's what I'm playing with) but will be secure even if this doesn't go high.
DeleteGood luck!
ReplyDelete