Why is it different than anything before.
Over the past couple of years, the most popular narrative of the crypto industry has been the approval of a spot bitcoin exchange-traded fund.
Dan Morehead, founder of Pentara Capital, explained why this is a big deal in a recent report. In the year On November 21st, Pantera Capital Managing Partner Dan Morehead speculated that a spot Bitcoin ETF could be approved in the near future and discussed its implications.
Spot Bitcoin ETF is Bullish
The old Wall Street adage “buy the rumor, sell the news” has worked perfectly in the past two big regulatory announcements in the space.
The bull market peaked at $20,000 on the day CME Bitcoin futures went live in December 2017. By early February, the asset had fallen 65 percent.
Additionally, on the day the Coinbase IPO went live in April 2021, the price of BTC was around $65,000, but it had tanked 54% in July of that year.
“While it's usually not a good idea to start with a prediction that this time is different…” he said, “I believe it here.”
“None of those events had any impact on the real-world accessibility of Bitcoin.”
Read more: How to buy Bitcoin (BTC) and everything you need to know
Speculators buy the rumor and sell the news. Moreover, BTC futures did not open the markets to new investors, a handful of arbitrageurs. Additionally, the change in ownership of Coinbase stock did not change access to Bitcoin.
“This is different. BlackRock ETFs fundamentally change access to Bitcoin. It will have a big (positive) impact.
Pantera's executive strongly believes that multiple spot BTC ETFs will be approved within a few months.
Contracts on the Chicago Mercantile Exchange return crypto futures ETP. However, spot production is backed by the asset, so issuers must purchase BTC to provide contracts to their clients.
Comparison with Spot Gold ETP
“Having an ETF is a very important step to becoming an asset class,” he says, before adding, “Once you have an ATF, you're effectively short if you don't have exposure.”
Analysts have compared it to the first gold ETF launched in November 2004. Demand for the asset has soared since the ETF legitimized gold as an investment.
In the year By the end of 2011, the price of gold had risen more than 300% to $1,800 per oz.
If demand for BTC mirrors that of gold, it could rise to $150,000 in the next few years. The property is currently converting at $37,363.
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