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- Gold’s price surged by 350% following the introduction of gold ETFs, raising questions about a similar impact on Bitcoin (BTC) with the approval of Bitcoin ETFs.
- Bitcoin may well mimic this trend and potentially explode to $150,000, as suggested by some experts.
Gold experienced a significant increase following the introduction of gold exchange-traded funds (ETFs) two decades ago. This historical perspective is considered pertinent by Standard Chartered, a leading global bank, in the context of Bitcoin ETFs. The question arises: Will Bitcoin (BTC) follow this trajectory and potentially explode to $150,000?
Recent data from Bitwise Asset Management, alongside statistics from the World Gold Council and Bloomberg, covering the period from 1850 to 2022, indicates that gold’s value rose by 350% subsequent to the initial approval of ETFs. This brings us to Bitcoin, often hailed as the new digital gold. Here are the reasons why I believe Bitcoin’s price is poised for even greater gains.
Gold has risen by 350% since the approval of ETFs. What sets #Bitcoin apart as the new digital gold, and why I believe that #BTC's price will experience even greater gains:
1⃣ It is much easier now to buy #BTC than it was for gold.
2⃣ It is now possible to include BTC in the… pic.twitter.com/5g6l8Um5uy— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) January 11, 2024
The Evolving Landscape of Bitcoin Investment and Adoption
However, while acquiring Bitcoin has become straightforward, managing it on a balance sheet entails unique challenges and liabilities for pensions and institutions. This is why assets such as $GBTC and $MSTR have been utilized for $BTC exposure, despite being less advantageous than holding physical Bitcoin. A spot ETF would resolve these issues.
In a tweet, Mark Kavanagh argues that Bitcoin is widely accessible through exchanges. He acknowledges the positive impact of ETFs but counters by highlighting that owning significant amounts of gold pre-ETF was challenging for most entities, from individuals to medium-sized enterprises.
The ETF unlocked latent demand for gold. However, such barriers don’t apply to BTC, and public sentiment towards each asset differs significantly. Thus, it’s debatable whether an ETF would create entirely new demand for Bitcoin.
While I agree ETF is a positive, I’ll play devils advocate here. It was extremely difficult for the average entity – individual up to MSEs – to own significant quantities of gold before ETF. ETF tapped into underlying demand. The same restrictions don’t exist wrt/ BTC, not to…
— Mark Kavanagh (@kav_4k) October 23, 2023
In another perspective, a member of the crypto community suggests that access to Bitcoin for retirement plans is set to become significantly easier. They shared an experience of asking HR in a large non-crypto company about including Bitcoin in a 401k plan, to which the response was negative. This scenario is expected to change with the advent of the ETF, enabling easier inclusion of Bitcoin in retirement plans through the newly approved Bitcoin Spot ETFs.
Moreover, As per recent CNF update, the recent U.S. regulatory approval of Bitcoin ETFs, set to begin trading imminently, has generated significant excitement. Many anticipate that these ETFs will democratize cryptocurrency investing, mirroring the transformative effect gold ETFs had on the gold market.
This previous shift in gold led to a substantial price rally. Some experts, including those at Standard Chartered, project that Bitcoin’s value could double to $100,000 this year, further fueled by the introduction of Bitcoin ETFs.
