YEREVAN (CoinChapter.com) – After the approval of the first US-based Bitcoin ETF, the cryptocurrency could further surge in price, following the example of gold, which has seen a significant uptrend since its first ETF launch in 2003.
In hindsight, gold historically was and still remains a safe haven for investors wishing to hedge against inflation, market instability, and political turbulence. Aside from buying the asset directly, traders and investors can purchase the precious metal on gold ETFs.
The ETF investment system gives traders exposure to a particular asset market without the necessity to purchase, store and resell it. Brien Lundin, the editor of precious metals and mining advisory Gold Newsletter, commented on gold ETFs’ impact on the asset’s popularity.
“Over the long term, the ETFs are putting the world’s gold into the hands of the investing public. They are in effect, democratizing the management, and mismanagement, of the world’s money supplies.”
asserted the editor.
The AUM (assets under management) of gold ETFs has had its ups and downs but pushed $200 billion over a year ago. Meanwhile, the precious metal’s spot market price has grown roughly 400% since the first gold ETF launch in 2003. The value for 1 oz stood at $1,766 in the New York session Monday.
Also read: Bitcoin boomed better as an inflation hedge than real estate and gold: Pomp
Dubbed “digital gold,” Bitcoin has also become a hedge against inflation and market turbulence. One could have applied the earlier mentioned comment from the editor of Gold Newsletter to Bitcoin as well as gold. “Democratizing the management of money” was the alleged purpose of creating the cryptocurrency in the first place.
Yet, while Canada has already approved its first Bitcoin ETF in Feb 2021, the US Securities and Exchange Commission (SEC) did not hurry to follow suit.
The SEC chairman Gary Gensler got multiple requests to review and declared he was not opposed to the idea. Accordingly, the agency compiled a review schedule, presented below.
Exchange-traded products provider ProShares got the approval on Oct 18 and put Bitcoin ETFs on the US map. ProShares CEO Michael L. Sapir commented on the breakthrough, saying that Bitcoin ETFs will significantly shape the future of BTC trading.
We believe a multitude of investors has been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one. BITO will open up exposure to bitcoin to a large segment of investors who […] are comfortable buying stocks and ETFs, but […] are concerned that [cryptocurrency] providers may be unregulated and subject to security risks.
asserted the executive.
Should investors expect a surge in price from Bitcoin? The flagship cryptocurrency value is already flirting with its all-time high of $64,895. If digital gold takes cues from its predecessor, BTC could expect a significant surge in the upcoming cycles. The gold value surged by 400% after the first ETF launch. If Bitcoin follows the same pattern, its price could hit $244.000 by the year 2038.
The BTC/USD exchange rate stood at $61,584 at press time.
Also read: Bitcoin breaks above $59K for the first time since May on BTC ETF FOMO
Ripple's XRP Surges 10% NAIROBI (Coinchapter.com) - Ripple's XRP surged as news broke about the…
Alex Labs NAIROBI (CoinChapter.com) — Bitcoin layer-2 developer Alex Labs has successfully frozen over $3.9 million…
THOTIANA, the newest meme coin on the Solana network, has announced the launch of its…
PEPE Trader Makes $21 Million A savvy crypto trader turned $21 million in profits from…
Cardano Whales Accumulate ADA Cardano (ADA) whales have begun accumulating ADA as the coin sees…
Why Gamety is a Hidden Gem● Gamety's P2E model introduces a deflationary reward system inspired…