Tag: Bitcoin spot ETF

Bitwise Backing Bitcoin 2024

Bitcoin could ironically be the safe haven in 2024 storm?

Bitwise Breaks the Bank: $200 Million Seed Investment Signals Bitcoin ETF Dawn

December 31, 2023 | Keith Lewis – In a move that sent shockwaves through the cryptocurrency community, Bitwise Asset Management, a leading player in the digital asset space, has secured a staggering $200 million seed investment for its spot Bitcoin Exchange Traded Fund (ETF) filing with the US Securities and Exchange Commission (SEC). This landmark development not only validates Bitcoin’s growing institutional acceptance but also paints a tantalising picture for its price trajectory in 2024, potentially fuelled by a wave of new investors entering the market.

The hefty seed investment, spearheaded by prominent venture capital firms Paradigm and Sequoia Capital, speaks volumes about the confidence these titans of the tech world have in Bitwise’s ETF endeavour. While numerous attempts at securing a US-based Bitcoin ETF have met with regulatory hurdles, Bitwise’s meticulous adherence to SEC guidelines and its focus on a physically-backed ETF, holding actual Bitcoin in its treasury, could be the key to unlocking this long-awaited access point for investors.

Larry Fink’s “New Gold” Prophecy Rings True

BlackRock CEO Larry Fink’s recent pronouncement of Bitcoin as “one of the best inventions in finance” and “the new gold” adds further fuel to the fire. His endorsement, representing trillions of dollars under BlackRock’s management, signifies a crucial shift in institutional sentiment towards Bitcoin, paving the way for a potential stampede towards the digital asset once regulatory barriers crumble.

Implications for Bitcoin’s 2024 Price:

The potential approval of Bitwise’s ETF in 2024 could unleash a cascade of positive effects for Bitcoin’s price:

  • Increased Liquidity: An ETF would provide a readily available and convenient avenue for institutional investors to invest in Bitcoin, significantly boosting its liquidity and potentially reducing price volatility.
  • Enhanced Accessibility: Retail investors, previously hesitant due to the complexities of directly purchasing and storing Bitcoin, would gain a familiar and trusted entry point through their brokerage accounts.
  • Boosted Investor Confidence: Regulatory approval would serve as a major vote of confidence from the SEC, further legitimising Bitcoin in the eyes of traditional investors and potentially triggering a surge in demand.

While predicting future price movements remains a fool’s errand, analysts are abuzz with bullish projections for Bitcoin in 2024. Some experts forecast a potential doubling of its current price, exceeding $100,000, fueled by the combined forces of ETF approval, institutional inflows, and increased retail participation.

Beyond the Numbers: A Paradigm Shift

The significance of Bitwise’s seed investment and the potential approval of its ETF transcends mere price predictions. It marks a turning point in the mainstream adoption of Bitcoin, signalling its evolution from a speculative internet plaything to a bona fide asset class embraced by both Wall Street and Main Street. The ETF’s arrival could usher in a new era of financial inclusion, granting millions access to a previously opaque and complex investment landscape.

Of course, challenges remain. Regulatory hurdles still loom, and concerns around Bitcoin’s energy consumption and scalability persist. However, the seeds sown by Bitwise’s bold move and the growing chorus of endorsements from financial heavyweights like Larry Fink suggest that the tide is turning in Bitcoin’s favour. 2024 could be the year it truly shines, not just in terms of price, but as a potent symbol of a decentralised future reshaping the very fabric of finance.

Investment Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any investment decisions.

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Will you drown or be saved with cryptos?

Some bank shares are still more than 90% off their peak pre 2008 financial crisis so there is no such thing as “safe as money in the bank”!

The Inflationary Storm: Are Cryptos Your Lifeboat?

A dark cloud hangs over the global economy. Whispers of recession turn into shouts, and governments, desperate to keep the ship afloat, resort to the familiar mantra: fiscal stimulus and quantitative easing. But what does this mean for your hard-earned money? Enter cryptocurrencies: a digital life raft in a sea of potential devaluation.

As a currency and economics expert, I’m here to navigate these choppy waters. Today, we’ll explore the potential for crypto as a hedge against fiat currency devaluation. We’ll dive into the economic storm, examine the limitations of traditional safeguards, and assess whether venturing into the crypto realm could be your best bet.

The Looming Devaluation:

Governments and central banks worldwide have injected trillions into their economies since the pandemic. This, coupled with supply chain disruptions and geopolitical tensions, is fuelling an inflationary fire. Fiat currencies, backed by nothing but government promises, are losing their purchasing power. A loaf of bread that cost $2 yesterday may cost $2.10 tomorrow, silently eroding your savings and future.

Traditional Safe Havens Fail:

Historically, gold and other precious metals have been go-to hedges against inflation. But their limited supply and physical constraints don’t cater to everyone’s needs. Real estate or property, another traditional option, suffers from high entry barriers and illiquidity.

This is where cryptocurrencies enter the picture. With their decentralised nature, limited supply, and global reach, they present a new, albeit volatile, option.

The Crypto Advantage:

  • Limited Supply: Unlike fiat currencies,many cryptocurrencies, like Bitcoin,have a predetermined cap on their supply. This scarcity helps limit inflation and potentially increases their value over time.
  • Decentralisation: Cryptocurrencies aren’t subject to the whims of governments or central banks. Their decentralised networks offer a buffer against devaluation policies used to stimulate economies.
  • Global Accessibility: Anyone with an internet connection can access and trade cryptocurrencies, regardless of location or financial standing. This democratises wealth management and opens doors to previously excluded individuals.
  • Store of Value: While their volatility often grabs headlines, cryptocurrencies like Bitcoin have exhibited long-term value appreciation. Their potential to act as a digital gold, a secure store of value in a turbulent economy, is undeniable.

The Risk Factor:

However, venturing into the world of cryptocurrencies isn’t without its risks:

  • Volatility: The crypto market is notoriously volatile. Prices can swing wildly, making them potentially unsuitable for risk-averse individuals.
  • Regulation: The regulatory landscape surrounding cryptocurrencies is still evolving, creating uncertainty and potential for government intervention.
  • Security: Crypto wallets and exchanges have been targets for hackers, highlighting the importance of choosing secure platforms and practicing safe storage methods.

Navigating the Crypto Waters:

So, should you dive into the crypto ocean as a hedge against devaluation? The answer depends on your individual circumstances and risk tolerance. If you’re looking for a safe haven, traditional options like gold might be better suited. However, if you have the risk appetite and are willing to do your research, cryptocurrencies could be a valuable addition to your portfolio.

Remember, diversification is key. Don’t put all your eggs in the crypto basket. Start with a small allocation, understand the risks involved, and invest only what you can afford to lose.

For Business Leaders:

  • Explore crypto’s potential as a payment option: Accepting cryptocurrencies can attract tech-savvy customers and expand your reach.
  • Consider crypto investments: Carefully assess the risks and potential rewards of incorporating crypto into your portfolio.
  • Educate your employees: Equip your team with the knowledge they need to understand and potentially utilise cryptocurrencies.

For Consumers:

  • Do your research: Understand the different types of cryptocurrencies and their underlying technologies before investing.
  • Diversify your portfolio: Don’t put all your eggs in the crypto basket.
  • Start small: Invest only what you can afford to lose, and remember the market is volatile.
  • Choose secure platforms: Store your cryptocurrencies in reputable wallets and exchanges.

Cryptocurrencies present a fascinating blend of opportunity and risk in the face of potential fiat currency devaluation. While not a guaranteed solution, they offer a novel approach to securing your financial future. Remember, knowledge is power in this realm. Educate yourself, assess your risk tolerance, and make informed decisions to weather the coming economic storm. The crypto lifeboat might just be the key to staying afloat in the inflationary seas ahead.

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Future Of Cryptocurrency

Fools gold or once in a lifetime opportunity in 2024?

The Crystal Ball of Crypto: Predicting Spot ETF Acceptability and Market Impact in 2024

The nascent world of cryptocurrencies has been on a rollercoaster ride, its trajectory heavily influenced by regulatory decisions, particularly when it comes to Exchange-Traded Funds (ETFs). Spot ETFs, tracking the underlying price of a crypto asset directly, promise to unlock unprecedented mainstream access and potential legitimisation for this new asset class. With multiple applications currently under review in various countries, the question remains: Where will these applications land? And what does it mean for cryptocurrency valuations in 2024? Predicting the future is always precarious, but by analysing current trends, regulatory landscapes, and industry sentiment, we can paint a picture of potential scenarios.

The Global Regulatory Landscape: Shades of Gray across Borders

The regulatory landscape for crypto assets, and Spot ETFs by extension, remains fragmented and diverse. Different countries approach the issue with varying degrees of receptiveness and caution. Let’s take a peek into some key regions:

  • North America: The US, the world’s largest financial market, has been notoriously hesitant. Despite numerous applications, the SEC hasn’t approved any Spot ETFs yet, citing concerns over market manipulation and investor protection. However, recent developments like BlackRock’s application and a court favouring Grayscale’s case signal a potential shift towards approval in 2024. Canada, on the other hand, has already approved several Spot ETFs, setting a precedent for the region.
  • Europe: Europe has taken a more pragmatic approach, with Germany approving its first Spot ETF in 2021. Several other European countries are actively considering applications, with Switzerland and France potentially following suit in 2024. However, stricter regulatory frameworks like MiCA could impose additional hurdles.
  • Asia: The picture in Asia is complex. Hong Kong, known for its financial openness, recently broke new ground by approving its first Spot ETF, the CSOP Bitcoin Futures ETF. This marks a significant departure from the stance of mainland China, which has banned individual crypto trading entirely. Meanwhile, Japan, after initial apprehension, has recently approved a Bitcoin futures ETF, potentially paving the way for further developments.

Predicting the Domino Effect: Acceptance Scenarios and their Impact

Based on these regional variations, let’s consider three potential scenarios for Spot ETF acceptance by the end of 2024:

Scenario 1: The Dam Breaks Open

A wave of approvals sweeps across major markets like the US, Canada, and several European countries. This scenario, fueled by growing institutional interest and industry pressure, could trigger a surge in demand for crypto assets, driving up valuations significantly. Increased liquidity and accessibility could attract new investors, further amplifying the bull run. This scenario, however, also carries risks, as rapid price climbs could be followed by sharp corrections if regulatory crackdowns or technological limitations arise.

Scenario 2: A Measured Waltz

Acceptance occurs but at a controlled pace. Regulators take time to carefully vet applications, prioritising robust safeguards and investor protection. This scenario would result in a gradual rise in valuations without the intense volatility of Scenario 1. New investors would enter cautiously, ensuring a more sustainable growth trajectory. However, this also means the full potential of Spot ETFs would be realised over a longer timeframe.

Scenario 3: The Cold Shoulder

Regulatory hurdles persist, with major markets like the US remaining hesitant. This scenario would keep the crypto market confined to its current niche, hindering mainstream adoption and limiting valuation growth. However, it could also foster further innovation within the crypto ecosystem, driving development towards greater decentralisation and security.

Beyond the Crystal Ball: The Unknowns and Opportunities

Predicting the future of crypto valuations is an intricate dance with numerous variables. Even the most robust analysis must acknowledge the presence of unforeseen black swans: unforeseen regulatory shifts, technological breakthroughs, or major market events. However, regardless of the specific scenario that unfolds, Spot ETFs are destined to be a game-changer for the crypto landscape. Increased institutional involvement, improved access, and potential regulatory legitimacy will undoubtedly have a profound impact on valuations, shaping the trajectory of this emerging asset class in 2024 and beyond.

As investors navigate this new frontier, it’s crucial to stay informed, manage risks responsibly, and remain adaptable to the ever-evolving nature of the cryptoverse. The crystal ball may be blurry, but the potential of Spot ETFs shines brightly, illuminating a future where mainstream adoption and institutional acceptance could propel cryptocurrencies into the heart of the global financial system.

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Will the SEC ever approve a Bitcoin ETF?

Will SEC’s Attempts to Block Spot Bitcoin ETFs Create Opportunities for Other Countries Financial Markets?

What crypto firm recently had its application rejected for a spot Bitcoin ETF but plans to immediately file again?

The U.S. Securities and Exchange Commission (SEC) has repeatedly rejected applications for spot Bitcoin exchange-traded funds (ETFs), citing concerns about market manipulation and investor protection. This has created an opportunity for other countries’ financial markets to benefit from the approval of spot Bitcoin ETFs.

Why Does the SEC Reject Bitcoin ETFs?

The SEC has cited a number of reasons for rejecting Bitcoin ETF applications, including:

  • Concerns about market manipulation. The SEC has argued that the Bitcoin market is too volatile and prone to manipulation, which could pose risks to investors in a Bitcoin ETF.
  • Lack of regulation. The SEC has also expressed concerns about the lack of regulation in the Bitcoin market. This could make it difficult for the SEC to oversee a Bitcoin ETF and protect investors from fraud.
  • Investor protection. The SEC has said that it is committed to protecting investors, and that it does not believe that a Bitcoin ETF would meet its standards for investor protection.

Will the SEC Ever Approve a Bitcoin ETF?

It is unclear whether the SEC will ever approve a spot Bitcoin ETF. The SEC has said that it is “open-minded” about the issue, but it has also said that it will not approve a Bitcoin ETF unless it can be confident that it will protect investors.

What Crypto Firm Recently Had Its Application Rejected for a Spot Bitcoin ETF?

In March 2023, the SEC rejected an application for a spot Bitcoin ETF from VanEck. This was the third time that VanEck had its application rejected by the SEC. VanEck has said that it plans to file its application again.

SEC rejected WisdomTree’s application for Spot Bitcoin ETF.

However when the king of investment management – Blackrock is world’s largest asset manager with 1300 ETFs – applies and is provisionally at least submits Spot Bitcoin ETF then you know SEC is fighting losing battle. Would Blackrock really submit inadequate Spot Bitcoin ETF to SEC?

SEC also rejected Fidelity – another big market player – reapplication for Spot Bitcoin ETF.

Blackrock, Fidelity and crypto firms in America are preparing to reapply to SEC following recent applications rejections. The crypto gold rush will continue despite SECs attempts to destroy crypto innovation in America.

What Does Spot Bitcoin ETF Mean?

A spot Bitcoin ETF is an ETF that tracks the price of Bitcoin. This means that an ETF investor would own shares in the ETF that are directly linked to the price of Bitcoin. When the price of Bitcoin goes up, the value of the ETF shares goes up, and vice versa.

How Could Other Countries Benefit from the Approval of Spot Bitcoin ETFs?

If the SEC continues to reject spot Bitcoin ETFs, other countries’ financial markets could benefit from the approval of these ETFs. This is because investors who are looking to invest in Bitcoin would be more likely to do so through a spot Bitcoin ETF that is regulated by a reputable financial regulator. This could lead to increased investment in Bitcoin and other cryptocurrencies, which could boost the economies of countries that approve these ETFs.

Could the SEC’s Attempts to Block Spot Bitcoin ETFs Backfire?

The SEC’s attempts to block spot Bitcoin ETFs could backfire. By doing so, the SEC could be seen as being out of touch with the evolving crypto industry. This could lead to investors losing faith in the SEC and its ability to regulate the financial markets. It could also lead to more investors seeking to invest in Bitcoin and other cryptocurrencies through unregulated exchanges, which could pose risks to investors.

The SEC’s attempts to block spot Bitcoin ETFs could create opportunities for other countries’ financial markets. However, it is also possible that the SEC’s actions could backfire and lead to more investors losing faith in the SEC and its ability to regulate the financial markets. Only time will tell how the SEC’s actions will ultimately play out.

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Will the SEC ever approve a Bitcoin ETF?