Bitcoin gets another solid backing after Cathie wood files for a Bitcoin ETF under the SEC. The filing was made yesterday by her company ARK Invest. The firm has also partnered up with 21 Shares for the launch. Being a believer in Bitcoin, her actions are where her mouth is. Even after the crash she still said that Bitcoin is going to $500,000. And now the Bitcoin ETF if approved will help in reaching that milestone. The ETF will track Bitcoin’s performance and give returns accordingly.
Bitcoin’s price action
Bitcoin has been hovering between $30k-$40k for quite a while now. And very soon it might either break towards the top or below. The point is that the market seems to be in a recovery mode. And if the SEC approves the Bitcoin ETF which will be the first in the US, it will be major news. This could help propel the price of Bitcoin past the strong resistance of $42k.
This price action of Bitcoin depicts that either Bitcoin will move steeply up now or steeply down. So, we are expecting that such news will help take this Wyckoff pattern to an accumulation one.
The big picture!
ETFs are very important for the growth of any asset. When the first gold ETF was approved in 2004 the price increased parabolically over the course of 10 years. An ETF brings an asset from the enthusiast community to the wide market. And this is why it is so important that the SEC actually approves a Bitcoin ETF.
An ETF also provides other important benefits like being able to diversify one’s portfolio by investing only in one place. At the same time, it also helps in tax benefits since ETFs are directly approved by the SEC. Unlike crypto, it helps in managing returns and risk much better and also helps save a lot of tax.
Many countries like Canada, Latin America and others have already approved a Bitcoin ETF. But the US hasn’t for obvious reasons. Approximately the US market is 26 times larger than that of Canada so you can imagine the kind of impact a BTC ETF approved in the country will have.
As Cathie wood files for a Bitcoin ETF, do you think many other big companies will follow suit? And is there a chance that the SEC will approve any of the same? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.