What happened in week 2 will go down in the history books as an extremely important event for Bitcoin and Bitcoin adoption. At the start of the new year, we wrote about why you should consider buying Bitcoin - and last week our theory was confirmed. On Wednesday January 10th, several spot Bitcoin ETFs were approved by the US Securities and Exchange Commission. This will pave the way for entirely new interest groups that will build additional products and services based on Bitcoin. Furthermore, investor groups that previously did not bother with or even had the opportunity to buy Bitcoin will now be able to do so. Read on to understand the significance of last week's events.
Do you want to buy Bitcoin safely and easily?
Do it at NBX. We allow you to buy Bitcoin in a seamless way and you can be sure that the cryptocurrency you buy from us is legitimate. Also explore our NBX Visa credit card where you get cashback in Bitcoin.
Bitcoin started the week trading around 43,913 dollars and the week's high/low was 48,494/42,442 dollars respectively. Bitcoin ended the week at $42,442 representing a 3.34% decline. The volume ranged from $13 billion to $63 billion.
As mentioned earlier, the approval of several spot Bitcoin ETFs was a significant milestone last week. The implications are widely recognized and positive for the overall Bitcoin ecosystem. As such, this fact cannot be stated enough. It opens the door for capital-rich masses to easily gain exposure to Bitcoin. Hereby, larger investors and fund managers who, previously hindered by mandates or cumbersome processes, can now seamlessly allocate a percentage of their funds under management to Bitcoin through the new spot Bitcoin ETFs. This again will help spur both adoption and use cases for Bitcoin.
What has not been talked about as much is the potentially new investor group that is now being brought to life. Namely, pensioners across the Western world. In the United States, for instance, these individuals commonly save in 401(k)s or Roth 401(k)s. The approval of spot Bitcoin ETFs provides these pensioners the opportunity to include Bitcoin in their pension portfolios. While these individuals always had the option to create accounts on platforms like Coinbase, Binance or NBX, the complexities involved might have deterred many. Also, in the wake of FTX, it has probably not been too tempting for a retiree to transfer funds to a centralized exchange who all of a sudden might collapse. Now, with the ability to invest in Bitcoin through their banks (thus brokers), the wealthiest demographic in the Western world—pensioners—suddenly can be a contributing factor to make Bitcoin even more mainstream.
To conclude, the spot Bitcoin ETF approvals will help to legitimize Bitcoin, fostering greater adoption, and opening up new possibilities for the leading digital currency.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX Team.
