First U.S. Bitcoin ETF
Summary
The CBOE/VanEck Trust filed for a Bitcoin ETF
Once approved, mass adoption of Bitcoin will occur
Bullish signal on Bitcoin for the remainder of 2021
Background
Bitcoiners,
On March 1st, 2021, the Chicago Board Options Exchange (CBOE) filed to list shares from VanEck’s Bitcoin Trust. If approved by governing regulatory bodies, then this will be the first Bitcoin ETF in the United States.
An Exchange Traded Fund (ETF) is simply an investment fund you can buy and sell openly on the stock market. You can buy ETF’s on popular investing apps such as Robinhood or Fidelity.
A Bitcoin ETF allows traders to invest in Bitcoin indirectly through the traditional stock market. Lots of investors need to follow regulations, which makes it hard to buy Bitcoin directly. Buying Bitcoin or other Crypto-related assets on an exchange can be burdensome. An official Bitcoin ETF solves this problem.
Remember the Winklevoss twins from the movie The Social Network about the creation of Facebook? They tried filing for a Bitcoin ETF in the U.S. back in 2013.
What is different about the CBOE/VanEck ETF filing, is now the U.S. Securities and Exchange Commission (SEC) will most likely approve the filing. In the last few weeks, Canada approved two Bitcoin ETF’s. If the United States wants to compete with Canada, then it is probably in their best interest to approve this Bitcoin ETF filing. Expect to see a U.S. Bitcoin ETF approved within the year.
Quick Story
I have a few personal friends and family that were looking to buy Bitcoin for quite some time. The process of buying Bitcoin on an exchange and storing it safely somewhere was intimidating to most people I talked to. These personal friends and family members wanted to buy Bitcoin indirectly through their retirement accounts.
Grayscale Bitcoin Trust (GBTC) was the first major option to buy Bitcoin indirectly through retirement accounts, so this is what I recommended. The price of Bitcoin has gone up quite a bit since my recommendation!
Why is this Important?
Approval of the first Bitcoin ETF in the United States is important for mass adoption of Bitcoin.
All different types of people, whether it be the regular person trading on Robinhood or an expert investor managing billion dollar accounts, will now be able to invest in Bitcoin in a traditional way.
Think about all the money that is about to be poured into buying Bitcoin indirectly. As the owners of the ETF buy up more Bitcoin, supply will continue to go down. Bitcoin has a finite supply.
The approval of a Bitcoin ETF will help the current Bitcoin bull market continue to stampede upwards. At the time of writing this, Bitcoin is trading at $49,500. I am buying more. Once the first Bitcoin ETF in the United States is approved, the flood gates will be open. I see today’s Bitcoin price as a massive discount.
Happy Tuesday,
-Pod
If you find any value in The Bitcoin Letter, please subscribe and tell a friend. By subscribing, you will be sent easy to understand information about Bitcoin along with any relevant news daily. That’s it. IT IS FREE AND I WILL NOT SPAM YOU!
Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz