HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

What A Bitcoin ETF Could Do to Its Price Following Gold’s Historical Moonshot

Bitcoin 2020/06/06 09:08 by Ponvang Bulus
What A Bitcoin ETF Could Do to Its Price Following Gold's Historical Moonshot

The price of Bitcoin will improve significantly if a BTC ETF is approved. This is the position of a cryptocurrency analyst, PlanB. In a Twitter post, he affirmed BTC will do better the same way gold has been performing better since the first gold ETF was approved in 2003.

The first gold-backed ETF, developed by ETF Securities was approved on March 28, 2003. It started trading on the Australian stock exchange as the ETFS Physical Gold. At the time, the Asset Under Management (AUM) was just a little over $600 million. Interest in gold spiked following this launch and the price of gold per ounce rose from about $332 to about $1,600, roughly a 400% increase.

What A Bitcoin ETF Could Do to Its Price Following Gold's Historical PatternChart Source: Plan B

With such growth, gold at a point was competing with major banks in terms of asset holdings and has come to earn the trust of investors as a portfolio diversifier. The gold industry is now worth $7.5 trillion and still growing with 30 gold ETFs in the United States alone and new ones are still being issued.

Bitcoin on the other hand has been in existence for only a little over ten years and without a Bitcoin ETF has reached a market capitalization of over $180 billion today. Although there have been several attempts to secure a Bitcoin ETF, this has met some resistance as none of the ETF applications from VanEck, Bitwise, and others have seen the light of day despite several postponements.

Some experts argue that Bitcoin is not yet ripe for an ETF because it took gold centuries to secure one. The crypto community on the other hand believes the government is delaying the ETF approval for fear that Bitcoin may grow to compete with mainstream banks as gold did and even more seriously so. Some have also said that the asset needs only time and not an ETF to grow as demonstrated by its performance in the last decade.

There has been a long-standing argument about which of Bitcoin and gold is a better store of value. At its current rate of growth and adoption, Blockstream’s Adam Back predicts that Bitcoin will hit a price of $300,000 per coin in the next five years. This will make it to out-compete gold as a store of value and having an ETF will be the icing on the cake.

0 Like(s)



You should also read...

Bitcoin 03/12/19 19:45 by Jamie Redman
Wisdomtree’s Physically Backed Bitcoin ETP Goes Live on SIX Stock Exchange
New York-based ETF provider Wisdomtree has launched a physically backed bitcoin exchange-traded product (ETP) on Switzerland’s SIX stock exchange. According to Wisdomtree, the new product is not...
Read More
Bitcoin 09/12/19 14:35 by Kevin Helms
Regulatory Roundup: Bitcoin Futures Fund Approved, India’s RBI-Backed Digital Currency
In this regulatory roundup, we cover the U.S. SEC approving a bitcoin futures fund, the new IRS tax form targeting crypto owners, and several more steps taken by the U.S. government toward crypto regu...
Read More
Altcoins 11/12/20 12:05 by Adrian Klent
Ethereum ETF debuts on the Toronto Stock Exchange, rakes in $300,000 in trading volume
The first Ethereum exchange-traded fund (ETF) has launched on the Toronto Stock Exchange. The official listing on the Ether Fund came after the 3iQ Ether fund raked in well over $75 million in fundin...
Read More
Bitcoin 10/05/21 23:10 by Olivia Brooke
Bitcoin May Never Go Below $50k Once An ETF Is Approved, Declares On-Chain Analyst
Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same pa...
Read More
Altcoins 02/07/21 01:00 by Best Owie
Scaramucci’s Skybridge Capital Launches Ethereum Fund
The CEO of Skybridge Capital, Anthony Scaramucci, has announced that the firm will launch an Ethereum fund. The fund is planned to be a private fund. Alongside this, Skybridge Capital has filed for an...
Read More