The Unnoticed Impact of the Spot BTC ETFs by the SEC
It’s happening. After years of side-eyeing crypto from afar, the SEC has finally approved the first Spot BTC ETFs.
The approval brought Bitcoin closer to Wall Street, saying it’s a legitimate financial investment. That is what the crypto market has been waiting for years to happen.
This opened the floodgates for several new investors, mainly from the traditional market. Still, there is a long path for global adoption that, rest assured, will take place sooner or later.
The market already anticipated this event, and prices reflected that. So what we saw was high volatility: prices surging, then one week later, a drawback.
Some people were enthusiastic at first but then thought this approval didn’t represent much for the long term. Here is precisely the critical value that is still unnoticed.
Today, there are still millions of Americans and global investors who are still not so sure about the legitimacy of BTC and crypto assets.
The truth is that this BTC approval is a validation by the SEC that Bitcoin is here for the long term. The SEC has been so against this asset class for the past years, but now they’re being less strict and opening up space for it to flourish.
The numbers speak for themselves.
New ETFs are coming in the next decade, maybe even sooner. The economy will keep shifting digitally, and your portfolio should have an allocation. Here is why.
Institutions Keep Allocating in BTC
Institutions are making their move, and we’re talking about institutions that you and the average American know and trust.
Vanguard. Vanguard had made recent moves into Bitcoin in 2023, including investments in Microstrategy, Marathon, and Riot. Bank of America has also invested in Microstrategy in the past.
There are currently eleven Spot BTC ETFs approved. Take a look at some names: BlackRock, Fidelity, VanEck, WisdomTree.
Those are asset managers most people know and even invest with. Think about it — the world where your conservative relatives wouldn’t touch Bitcoin with a ten-foot pole is fading.
Strategic decisions are going on by some of the most traditional asset management firms out there. This strongly hints that the crypto market is evolving into a mainstream investment avenue.
There Will be Crypto in Every Portfolio, Like It or Not
Here’s a bold prediction: in the next decade, almost everyone will have some form of crypto exposure in their portfolio.
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You might not even realize it, but as the investment sector embraces digital assets more broadly, avoiding crypto will be like trying to avoid the internet in the early 2000s — pretty much impossible.
The wealthiest investors, the 1%, are already putting 1% to 5% of their portfolios in Bitcoin. Stanley Druckenmiller, Paul Tuder Jones II, Carl Icahn, Ricardo Salinas and many more.
The chart below will give you an idea of why you should invest in BTC (and crypto) if you believe that it will be here in the long term.
Investing in Crypto is Getting Easier
Another analogy for you. Remember when buying stocks online was a new thing? Now it’s routine. The same shift is happening with crypto.
Investing in digital assets like Bitcoin is becoming easier daily, with options available through regular brokerage accounts, IRAs, and more.
Crypto is becoming an everyday part of investment discussions and decisions.
The approval of Spot Bitcoin ETFs is a big deal. It’s a signal from the financial world that Bitcoin is here to stay.
With the economy going digital in so many ways, it only makes sense for portfolios to reflect this shift.
The rise of new ETFs over the next decade will likely continue to shape how we think about and invest in digital assets.
What This Means for Your Portfolio
If you’re not already considering how digital assets fit into your investment strategy, now’s the time to start.
With significant institutions and savvy investors getting on board, overlooking crypto could mean missing out on an important diversification and growth opportunity.
So, there you have it. The approval of Spot Bitcoin ETFs is a sign of a broader shift in how we think about and invest in crypto assets.
Whether you’re part of the 1% or just starting to build your portfolio, it’s worth paying attention to this trend.
Start thinking like the 1% and you’ll be one step closer to them.