Tag Archives: cryptocurrency

The Bitcoin Spot ETF Is Officially Approved

I have been waiting for this day for a long time. Companies have been trying to launch a Bitcoin spot ETF for a while now, but the SEC has never allowed it to happen. I always knew that they would one day have to approve one. Fortunately, they have…. along with 10 others.

Blackrock, Ark, WisdomTree, Invesco, Bitwise, VanEck, Franklin, Fidelity, Valkyrie, Grayscale, and Hashdex all got approved for a Bitcoin ETF, and these funds will start trading tomorrow, January 11th. Companies have been trying to launch a Bitcoin spot ETF for over a decade now as the first one proposed was back in 2013 by the Winklevoss twins. They got denied along with several others after them. Bitcoin Futures ETFs (doesn’t hold Bitcoin directly but instead buys Bitcoin futures contracts) were approved but never a Spot Bitcoin ETF (actually holds Bitcoin).

The reason that I am so excited for this and believe that this will be amazing for Bitcoin is due to several reasons. First, a Spot Bitcoin ETF makes it easier to start investing in Bitcoin. The reason for this is because one can now buy Bitcoin like a stock. They don’t have to worry about storing their crypto safely in a wallet (which can be difficult especially for people new to crypto). They can simply buy and sell Bitcoin in their brokerage accounts like any other stock or ETF.

Second, a Spot Bitcoin ETF makes it easier to store Bitcoin in a tax-free retirement account like a Roth IRA or 401k. This is something that I am very excited about, myself. I am a firm believer in Bitcoin, and I definitely want the asset in my Roth IRA. Since I believe that Bitcoin will keep increasing in value over the long-term, I want it in my Roth IRA so that when I do sell it one day, I won’t have to pay taxes.

Third, a Spot Bitcoin ETF makes it possible for people to trade option contracts on Bitcoin. This is something I have seen a huge demand for. Investors will now be able to place call and put options on Bitcoin through this ETF.

I am very excited for this news. While I don’t know how this will affect the price of Bitcoin in the short-term, I have no doubt that this will be great for Bitcoin in the long run. That said, this article is for information purposes only and should not be taken as financial advice.

If you liked this article, you’ll probably like the next one. Subscribe to the blog by entering your email down below.

Affiliate Partners:

Check out the investing app SoFi. Sign up through our link and get $50 in free stocks by investing $10 – https://www.sofi.com/invite/invest?gcp=3cf3452a-7a65-41c8-b2d4-dc3752d20d92&isAliasGcp=false

Also, check out the SoFi credit card. I use it to get 2% cash back on all my purchases which I then use to buy more stocks. Sign up through our link and get $50 when approved – https://www.sofi.com/invite/credit-card?gcp=697cc781-fb37-447d-923c-4ef1c7de6837&isAliasGcp=false

Bitcoin Is Rising. Why?

Bitcoin is currently trading at just over $37,000 a coin. Much higher than the beginning of the year when it was trading at around $16,000 a coin. With that in mind, one can see that Bitcoin is having a really good year. Bitcoin’s up 124% so far year-to-date which makes it one of my best performing investments of the year.

The real question is, why? Why is Bitcoin up so much this year? Especially considering the fact that a good chunk of that growth happened in the last couple months.

The big reason is the idea of a spot Bitcoin ETF. I’ve written before that Blackrock, along with several other companies, are trying to create a spot Bitcoin ETF, but the market believes we are getting really close to this being a reality. Several asset management companies are trying to create one, but Blackrock is who I am most excited about as they are the largest asset manager in the world.

I’ve been really excited about the possibility of a Bitcoin ETF. I believe that the price of Bitcoin will skyrocket when it’s approved. An ETF like this would make it so much easier for someone to buy and hold Bitcoin. It makes it easier for companies to buy Bitcoin. I believe that when this finally happens, a lot of money will pour into Bitcoin.

I’m very happy with the performance of Bitcoin so far this year.

If you liked this article, you’ll probably like the next one. Subscribe to get all future blog posts emailed directly to you.

I created a list of finance tools that I use to build wealth. Check it out and see if one will help you – https://cwt.finance.blog/finance-tools/

Thoughts on Bitcoin for Q4 2023

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.

Join my email list down below to receive more articles all about investing emailed directly to you!

Download the investing app SoFi through our link and deposit $10, and you’ll get $25 for free! Download here – https://www.sofi.com/invite/invest?gcp=3cf3452a-7a65-41c8-b2d4-dc3752d20d92&isAliasGcp=false

Download money manager Acorns. Acorns manages and invests your money for you! Download Acorns through our link and get $5 – https://share.acorns.com/zones/friend_landing_experience_microsite?extole_share_channel=SHARE_LINK&extole_shareable_code=calebtanner64&cro-test=true

Check out the SoFi credit card. This is a great credit card for investors as it offers 2% cash back that one can use to invest. Download it through our link and get $50 if approved! – https://www.sofi.com/invite/credit-card?gcp=697cc781-fb37-447d-923c-4ef1c7de6837&isAliasGcp=false