That’s a ~13% jump in 24hrs!
The jump is due to a recent wave of applications for Bitcoin ‘Exchange Traded Funds’ (ETFs, if you’re nasty).
Here’s what that means, and more importantly – how it led us here:
A Bitcoin ETF is a fund that lists its shares on the stock market, then buys up Bitcoin. The more shares get purchased, the more Bitcoin the fund buys.
This means US stock traders can buy Bitcoin by proxy of shares, without worrying about any of the typical legal implications of buying crypto.
This is a big deal 👈 so big that we used bold AND italics.
(Why not underline it too? Because we have decorum and self respect, thank you very much).
Right now, none of these ETFs have been approved, but there’s a lot of confidence in the market that at least one of them will be.
And that’s how we got here:
Investors are trying to front run the announcement of the approval and buy up BTC while its cheap.
The watered down logic of it all being:
The US stock market is worth around $40 trillion (with a T) → a Bitcoin ETF makes it easy (and legal) for some of that value to be put towards buying BTC → Bitcoin’s current total value is ~$600B → even a small allocation of the US stock market’s total value would have a MASSIVE effect on BTC.
(For context, if US stock traders allocated ~1.5% of their portfolios to BTC, it would literally double Bitcoin’s current total value).
As with all things in life, this could just be fleeting – these ETF applications could well be denied.
But even if just one gets approved, it will be a BIG moment for Bitcoin!
Now. Who wants to go practice karate in the garage?
