Coindesk: Bitcoin ETFs: The Bull Case
After a 160 percent return in 2023, bitcoin continued to trend higher amid rumors that the SEC would approve several bitcoin ETFs. A spot bitcoin ETF would be a sign that cryptocurrencies, which have only been around for 15 years, have made it as an asset class.
Many financial providers such as Fidelity, VanEck, and BlackRock have been tweaking their applications in recent weeks ahead of the SEC’s approval on Wednesday. All these organizations see large investor demand.
How much? Potentially as much as $100 billion. The true benefit to a bitcoin ETF is that it would give investors a way to put bitcoin into a 401(k) or retirement account.
While crypto is volatile, it moves higher over time. And capturing part of that move in a tax-advantaged way could prove life-changing.
Plus, given the high volatility of bitcoin, investors looking to increase portfolio risk could build a small stake with a bitcoin ETF. That could help improve their overall returns.
So far, it’s still in the early stages. But with the bitcoin having coming up later this year, 2024 stands to be a banner year for crypto.
And as bitcoin trends higher, demand will likely increase for more diversified crypto ETFs. Altcoins could see a far bigger percentage rally as a result.
