I’m going to write a book about crypto in the next couple of years. And one of the book’s chapters will be devoted to bitcoin ETFs.
Since 2018, crypto investors have been hoping that an SEC-approved bitcoin (spot) ETF would lead to a tidal wave of institutional money entering the system. But the SEC hasn’t approved a single ETF application. And it’s made it very clear that it is not going to do so in the near future.
That hasn’t stopped institutional money from entering the space. Fidelity Digital has funneled billions into crypto. It recently submitted a bitcoin ETF for approval. And it’s building an institutional grade crypto exchange with Charles Schwab and Citadel Securities.
Blackrock has also submitted a bitcoin ETF proposal. Blackrock CEO Larry Fink says he believes bitcoin could “revolutionize finance.” Fink didn’t always believe this. But times change. And institutions are ready for bitcoin.
Once institutional investors taste crypto, they won’t stick to just bitcoin. They’ll move into ethereum next. And eventually, they’ll move into other large-cap altcoins.
For retail investors, this is great news. It means that at some point in the future, a large tidal wave of money will likely lift crypto prices to new heights. And as long as you’re already invested in the market, you should benefit from this surge.
Unfortunately, we have no idea when the next tidal wave of institutional money will hit. The SEC’s intransigence combined with Congressional inaction and interest rate worries has created an environment where bitcoin occasionally gains traction and altcoins are struggling.
It’s a frustrating market to invest in. But there’s potential. And we’ll look into that potential over the next few weeks.