S54: Bitcoin ETF approved, then what?
Let's talk about the approval of Bitcoin ETF and its major landscape
Last updated
Let's talk about the approval of Bitcoin ETF and its major landscape
Last updated
FIRESIDE CHAT (EP 3)
In today's series, I have one poll & one question for you.
After Bitcoin ETF, what next?
he said, at that time, countries already own massive gold, gold was held widely and it was inflating at 2%/year
But when Bitcoin was approved, countries barely own bitcoin, a few than 1 million people will ever own one bitcoin, meanwhile the inflation rate of bitcoin is 1.8% soon to drop by half.
he also argued that, the years between the california gold rush and gold approval was 156years, Bitcoin achieved that in 15years.
California gold rush of 1848: it started January 24, 1848, when gold was discovered by James W. Marshall at sutter's Mill in coloma, in California. it span between 1848 to 1855.
Engage the polls, engage the comment section, and show reactions so we can all have a wonderful experience today.
Today's series is sponsored by ADEWALEFLEX,
Historical comparison of Bitcoin ETF
What is ETF, its usefulness and what it means to you
what is Bitcoin ETF and why it matter.
Welcome to Breakfast with Blockchain, Here, we talk about Web3, Innovation, our environment and recent development. this Saturday and every other Saturday at 10 a.m, we gather here to chat. Join our WhatsApp for discussion and Connect with us on twitter in our twitter community. and let's grow together.
This is Sirflex speaking, Your Host!
Let's get started!" 💡🚀 #BreakfastWithBlockchain
As I said earlier, people are comparing Bitcoin ETF to Gold ETF, why? because gold has been a store of value for centuries and it is used most times to hedge against inflation and currency fluctuations,
and many people see that the way gold has been, bitcoin can do much more, and comparison come from angle of store of value, diversification instrument, inflation hedge, limited supply, perceived value .
but we all know that gold is a pure gem stone. what then is ETF, because without it, we can't get to bitcoin ETF.
in simple term, ETF is an exchange traded fund that
contains a basket of asset
allows investor to be exposed to this asset without actually owning the asset
this basket is now divided into shares
then listed on stock exchange
the ETF tracks the price of the underlying asset.
so let's take gold as an example,
gold involve alot of process to own it. from actual buying to actual storing to actually providing security measures so that the gold wont be stolen. and then the bulkiness and so on. because of all this complexity. an institution, an investment company can buy a large amount of gold lock it up in a vault. provide security for it.
they will now divide the total value of the gold holdings into shares that can be easily affordable. and start selling this shares to you.
now each shares will track the price of actual gold. but you wont own any gold, so more like the shares is an evidence that you own a certain amount of the gold holdings.
This also comes with risk, such as trusting the company that issues you the shares, transparency and the strength of security. and most importantly the integrity of the holding company. t
his is where SEC enters. SEC steps in to say, i am here to protect investor that will buy your shares, and i want to make sure you do right by them. so for you to sell these shares, you must meet this criteria, once you do, i will approve your shares and people that stays in my juricdiction can start buying your shares.
in the instance of bitcoin ETF.
taking GBTC for example
1 BTC = 1,118.28 GBTC
1 GBTC = 0.00089423 BTC = $38.8
Now people are comparing Bitcoin ETF to Gold ETF, in particular, argued that when Gold ETF was approved in November 2004, There was an 8 years bull run that saw gold price return 420%.