It Finally Happened: Bitcoin Through ETFs

Published: 2024-01-19 00:00:00

Arbitrage Blog Image

After 15 years since its inception, the moment we've all been waiting for has arrived: you can now purchase Bitcoin through ETFs (Exchange-Traded Funds). Why is this momentous? It definitively answers the questions: "Is Bitcoin a real asset class?" and "Is Bitcoin here to stay?" The answer is a resounding YES! Bitcoin has achieved mass adoption in half the time it took for the internet's first widely used browser, Mosaic, to reach a similar level of critical mass. However, for Bitcoin Maximalists, there's still a long road ahead. The approval of Bitcoin ETFs is a significant milestone for several reasons, but it's just the first step towards the mass adoption that early Bitcoin adopters have been hoping for.

Awareness and Acceptance

Back in 2018, Bitcoin became a hot topic among major financial players. It was impossible to watch CNBC without hearing about Bitcoin, often associated with illicit activities. Throughout its fluctuations, investors were uncertain about Bitcoin's legitimacy and how to invest in it. The introduction of a Bitcoin ETF has made it as easy to purchase as using your regular brokerage account.

Training and Adoption

Before investors dive into Bitcoin, salespeople need to be educated about what it is, how to sell it, and why it's necessary. Due to previous limitations in purchasing options, many financial advisors tended to ignore Bitcoin. However, those who have spent years learning about it will now have a significant first-mover advantage. The next few years will see an increase in training for this new asset class, eventually making it a staple in everyone's portfolio.

The Buyer's Journey

After hearing the sales pitch, many investors might initially hesitate to buy. They will continue to monitor the price, read analyses, and gauge opinions from peers. There will come a moment of urgent buying - driven by fear of missing out - leading them to contact their brokers to invest. This is when we'll witness the true adoption of Bitcoin through ETFs. And for early adopters, the journey doesn't end here.

Expansion and Legitimization

Following this, we'll see the approval of other cryptocurrency ETFs, the introduction of crypto derivatives, and lending products backed by this new asset class, further cementing its legitimacy and significance.

What's Next for Bitcoin?

Initially, the approval of Bitcoin ETFs seemed like a classic "buy the rumor, sell the news" scenario. However, as Bitcoin nears a halving cycle and emerges from one of its notorious winters, it leaves many wondering: are we on the brink of another ride to the moon?

This is not financial advice.

Like this article? Share it with a friend!