BTC Rises as Spot Bitcoin ETFs May Become a Reality
2023 has been a wild year for Bitcoin (BTC). After surviving a pretty chilly "crypto winter", Bitcoin's not just back; it's been on a roll, more than doubling this year. A lot of this excitement is thanks to some big names in the money world, like BlackRock, thinking about diving into the Bitcoin pool with something called a spot Bitcoin ETF. And they aren’t the only ones. For instance, ARK Invest and others are also looking to jump in.
So, why all the fuss about this spot Bitcoin ETF? The current Bitcoin ETFs out there are playing around with Bitcoin futures, which aren’t exactly the same as buying Bitcoin directly. But this new type of ETF? It wants to deal straight with Bitcoin. This means that what you invest in would match up more closely with Bitcoin's sometimes wild price changes, as the ETF itself would own Bitcoin, not Bitcoin futures.
For everyday folks, this could be a way to get in on the Bitcoin action without getting too technical. No need to mess with crypto wallets or figure out how to buy on an exchange. It would essentially feel the same as buying a regular stock or ETF on your brokerage account.
Of course, it's not all smooth sailing. There are rules and regulations to think about. Lately, even a hint of these ETFs getting a green light has made Bitcoin's price shoot up (see below). It shows just how eager people are and what's at stake. However, even recent geopolitical events, like the tensions between Israel and Hamas, might be making some view Bitcoin as a safer investment option, making the stock price go up.
Source: TradingView
Crypto stocks are up as well today. For example, Coinbase (NASDAQ:COIN) is up over 6%, while Marathon Digital (NASDAQ:MARA) is up around 12%.
Conclusion
Big finance stepping into the Bitcoin world could be a game-changer. With them on board, Bitcoin could become even more mainstream, as it would be extremely easy to buy and sell Bitcoin without the hassle of making a crypto account on a platform like Coinbase, for example. Everyone's waiting to see what happens next.
