So how will the new Bitcoin ETF affect Bitcoin’s price? Well, as we know, in the crypto world, perception means a lot. It may not mean everything, but it is important. With the first day of the ETF made public, we are seeing positive results.

I like ETF’s. ETF's stands for "exchange traded funds." They typically follow a certain industry or a grouping of similar funds rather than stand alone as individual stocks. I made a decent amount of money with SLV and GDX (silver and gold ETF’s) over the past decade or so. I am out of those industries now. I am now drawn to index funds, like FXAIX, as I look ahead to retirement. However, the new Bitcoin ETF has my attention. Why? After all, I can go to any exchange and buy BTC. Why invest in the ETF as well?

There may be a number of reasons, but for me there is one big one: I can make it part of my retirement portfolio and not pay taxes on my contributions. That is, I can defer my taxes for many years, until I decide to reap the benefits. The ETF will track where Bitcoin goes. I expect, like most of you, that over the next five years, BTC will continue its trend upward. Some analysts see $200,000 within 3 to 5 years. If so, I will gladly reap those benefits and pay my share of taxes.

According to CNBC,

“The ProShares ETF is the first bitcoin ETF to trade in the U.S. on a regulated exchange and comes after many years of the cryptocurrency industry hoping to get one launched to provide investors easy and safe access to bitcoin exposure. The ETF, which tracks CME bitcoin futures, rose more than 2% as it debuted in morning trading.”

Notice the writer states that the crypto industry wanted this. This may be a generalization. I know some folks may fear the move away from decentralization. But keep in mind. This is not BTC becoming decentralized. This is an example of major centralized institutions recognizing the validity of Bitcoin.

CNBC continues,

“A breakout to new all-time highs would be a positive long-term development targeting $89,800, according to Fairlead Strategies’ Katie Stockton. Fundstrat’s Tom Lee said Monday that he can see the bitcoin futures ETF driving the price above $100,000, his long-time price target on the cryptocurrency.”

Wherever BTC goes, almost everyone sees it going up. A few dinosaurs that hate Bitcoin might disagree, but my hunch is that some of them are jealous because they missed the boat. They didn’t see it coming. They put their investments elsewhere. The Bible says, “where your treasure is, there will your heart be also.” For better or for worse, the naysayers have placed their treasures in other areas and will likely never admit the validity of cryptocurrency.

If you wish to by this ETF, look for BITO. It may or may not be eligible for a retirement fund yet. You would need to check with your broker or fund manager.

It seems that the ETF is already having a positive affect on Bitcoin prices. From where I am sitting, perception is in Bitcoin’s favor.

As always, buy, sell, and trade at your own risk.

The Lynx

www.cryptolynx.co

Art Lynx (@ArtLynx1) / Twitter