Will A Spot Bitcoin ETF Make A Difference?

While currently the battle is on to produce and approve a Spot ETF for bitcoin which I wrote about in more detail here What Is A Spot ETF there's already spot ETFs for bitcoin already located in Canada and Europe.

These other ETFs have so far failed to attract any major investing but could the USA based ETF be different? It's clear that USA wealth unshadows these other two ETFs and the EU is currently and has been going through some major issues with money and wealth in their countries as of late. Canada is a bit smaller and doesn't have a huge wealth cap such as the US has.

So could the USA Spot ETF for bitcoin make a difference?

We saw just on speculation alone and without any approval that bitcoin has already gone from $27,000 to over $31,000 which is no small jump.

The other aspect of this is that the companies filing these Spot ETFs have trillions of dollars in aspect compared to companies in the EU and Canada. This large amount of funds means that even if just 5% of it gets funneled into Bitcoin we would see all time highs again nearly $130,000 per bitcoin and we all know that once funds start to bull market everyone else starts to ape in trigger a large bull market than what was originally thought.

If we track history of bitcoin we see that a move like this would put us around a top of $130,000 per bitcoin and a new possible low of $40,000 - $50,000 mark still making the current price an attractive offer. Of course this is all pure speculation and any number of things can happen over the next few months or years.

One thing for sure though is a Spot ETF which is based more on assets instead of futures markets ETFs would bring a lot of needed liquidity to the markets. It would also reduce exposure and wild price changes eliminating some of the risks which accredited investors look for.

The other side of this to look at would be the recent flush of cash that has gone into Gold and Silver Spot ETFs and weather or not those assets would move or not. It's clear that large investors are looking for ways to limit risk right now and not take on more risk. But those juice 100%+ gains always look nice as well to try for a dump 5% of your portfolio into.

Posted Using LeoFinance Alpha