Alex Krüger, an economist and crypto trader, thinks that BlackRock’s filing for a Bitcoin (BTC) exchange-traded fund (ETF) is one of Bitcoin’s “easiest long entries of the year.”
The biggest asset manager in the world, BlackRock, sent an application for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC) last Thursday.
Krüger says it’s “incredible” how many traders ignored the ETF news. He tells his 154,000 Twitter followers that he has a “gut feeling” the SEC will accept the investment firm’s application in 2024.
Even though Grayscale, VanEck, and Cathie Wood’s ARK Invest have all put in for Bitcoin spot ETFs, none have been accepted so far. The SEC did agree that two Bitcoin futures ETFs can start trading in October 2021.
Krüger says that the price of gold shot up after the first American ETF was approved, but he warns that the fund wasn’t the main reason for the rise.
“The first gold-backed ETF in the US, GLD, was launched on Nov/18/04. Gold skyrocketed soon after, clocking a 318% increase in seven years.
Bear in mind the main drivers of gold at the time were monetary policy and inflation expectations; the ETF simply enabled the flows.”
At the time this was written, the price of Bitcoin was $28,748. The market capitalization of the most valuable cryptocurrency has gone up by more than 6.5% in the last 24 hours.
