Bitcoin Rockets to New Heights at $36K while ‘ETFs Still Up for Grabs

Bitcoin Reaches $36K Milestone with 'ETFs Not Reflected

Did you hear the news? The price of bitcoin (BTC) reached for the stars, briefly touching $36,000 before settling back down during Asian trading hours. It’s like a rollercoaster ride, but for digital asset investors!

Bitcoin has been on a winning streak, up around 30% in the last month and a jaw-dropping 93% over the past year. It’s not just bitcoin, though. Ether (ETH), another big player in the digital world, is also shining bright with a 20% increase in the last month. Talk about a power duo!

Everyone’s wondering what’s behind bitcoin’s impressive performance this year. Some say it’s because we’re all eagerly waiting for the approval of a bitcoin exchange-traded fund (ETF), the holy grail of crypto investments. But hold your horses, because according to Matt Hougan, Bitwise Asset Management’s Chief Investment Officer, the ETF frenzy is not priced in just yet.

Hougan says, “It’s not at all priced in because the people who are going to buy this ETF are not aware that it’s coming or most likely coming.” Surprise! The majority of advisors, who are the natural audience for this ETF, don’t expect it to come until 2025 or later. So, if the folks who will buy the ETF don’t anticipate its approval in the next two months, then it’s safe to say it’s not priced in.

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But why is this ETF such a big deal? Well, according to Hougan, ETFs could be a game-changer for the crypto world, bringing in a whole new crowd of investors, especially those financial advisors who manage a chunk of America’s wealth. Currently, only 20% of self-directed retail investors have dipped their toes into the crypto market. That means a whopping 80% of the nation’s wealth is controlled by financial advisors and institutions who are eagerly waiting for the ETF gate to open.

“There’s a whole entire new audience for bitcoin,” says Hougan. It’s like the launch of gold ETFs in the early 2000s all over again. Back then, the approval of a spot gold ETF led to years of gold price increases. And the approval of a bitcoin ETF could do the same for the cryptocurrency. Imagine the possibilities!

Even the filing of a spot bitcoin ETF by BlackRock in June sparked a psychological shift in the market, wiping away the negative sentiment from the FTX collapse. It’s like the ghosts of Sam Bankman-Fried vanished into thin air as the CEO spoke about bitcoin transcending other currencies. Talk about bringing sunshine to a cloudy day!

So, dear investors, buckle up and get ready for the ETF rollercoaster. The future of crypto investments is just around the corner, and it looks like it’s going to be a wild, exhilarating ride. Are you ready to jump on board?

Edited by Parikshit Mishra.

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