At time of writing, Bitcoin currently is trading at $26.5k.
If one would have invested in Bitcoin at the beginning of the year, they would currently be up 59.4%. This is obviously a nice year to date return, but Bitcoin is still very far from its all-time high of around $69k a coin. Now that we are in Q4 of this year, here are my current thoughts on Bitcoin.
Right now, there is some positive developments in the space. There are many companies competing to bring a spot Bitcoin ETF to market. This would be a fund that moves directly with the price of Bitcoin. There are already Bitcoin future ETFs that bet on the future price of Bitcoin, but future ETFs do not move directly with the asset. Grayscale has been trying to become a spot Bitcoin ETF for a while now, but the asset management company Blackrock, along with others, have recently also tried to get a spot Bitcoin ETF created. I think that this is very bullish.
The reason I believe this is bullish is because a spot Bitcoin ETF opens up a lot of possibilities. First, it makes it easier for the average person to store Bitcoin. I have had many people tell me that they want to buy Bitcoin. When they do, I try to explain to them how storing Bitcoin works. Right now, one can store their Bitcoin on their own digital wallet. When one creates that wallet, they get a seed phrase that is essentially the password to that wallet (a very very long password). It’s a password one can’t lose. If one loses that password, they cannot get into their wallet ever again. This is how a lot of people buy Bitcoin and then lose access to it forever. With a spot ETF, one can invest into it like a stock which is much easier.
Secondly, it lets people hold Bitcoin in their Roth IRAs. There are companies already one can use to put Bitcoin in their Roths, but a Bitcoin ETF would make this much easier. I believe that Bitcoin being an option for retirement accounts would greatly increase demand.
I believe that a spot Bitcoin ETF will eventually get approved. Grayscale recently won an appeal with the SEC that I think is very good news. I see this as very beneficial to Bitcoin long-term.
Will this help Bitcoin’s price movement in Q4 2023? I believe that it should, but even if it doesn’t, I believe that this will help the price of Bitcoin long-term. I also hope that it doesn’t yet, as I would like to keep buying Bitcoin at as low prices as I can. If the positive news doesn’t help Bitcoin’s price for a bit, that is very much good news for me.
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Finance by CWT 