By Justin Spittler, editor, Casey Daily Dispatch
Bitcoin is about to get a whole lot easier to buy.
That’s because the United States should soon have its first bitcoin ETF.
An ETF (exchange-traded fund) is one of the most popular securities to own. There are ETFs that track indices, commodities, bonds, or a basket of stocks.
They also trade like regular stocks… making them easier for any investor to buy and sell—including big-time institutional investors. In fact, most major money managers put the bulk of their clients’ money into ETFs.
That’s why this ETF is such a big deal.
It could send billions of dollars pouring into bitcoin.
That would obviously be extremely bullish for the price of bitcoin.
So I’ll tell you what to do about this in a second. But let me first tell you why you’ll soon be able to buy bitcoin through an ETF.
• CBOE Global Markets just applied for a bitcoin ETF license…
It filed the application with the Securities and Exchange Commission (SEC), a government agency responsible for protecting investors.
This is significant because CBOE Global Markets is one of the world’s largest exchange holding companies.
That said, this isn’t the first time that a big investment firm has tried to get its own bitcoin ETF. Other major entities like VanEck Funds have also tried and failed.
• So why I am so confident that the CBOE will get its own bitcoin fund?
Last month, the SEC ruled that bitcoin is not a security:
The SEC is right to insist that the digital coins, such as bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen, and euro, are not securities.
Because of this, there’s no worry about bitcoin ETFs being unregistered securities. That’s why many people think the SEC will now approve the CBOE’s application.
• If that happens, the CBOE could have its own bitcoin fund by 2019…
And that’s a huge deal.
In fact, I think this single decision could ultimately cause the price of bitcoin to skyrocket.
I can say that with confidence because the same thing happened with gold 15 years ago.
You can see what I mean in the chart below. It shows what gold did after the first gold-backed ETF was introduced in early 2003.
You can see that gold jumped more than fivefold after the first gold-backed ETF was introduced in March 2003.
Now, I’m not saying this is the only reason why gold went on this monster run. But it certainly played a big role.
After all, gold became much easier to buy after the introduction of gold ETFs. Everyday investors could buy gold with the click of a mouse… and own it in their retirement accounts.
In short, I expect bitcoin to go on an explosive run once the first U.S. bitcoin ETF rolls out. Not only that, bitcoin should head much higher than 5x…
• That’s because it’s still early days for bitcoin.
The cryptocurrency has only been around since 2009… Not only that, the current market value is less than $120 billion.
Bitcoin could go parabolic once a bitcoin ETF comes to the United States.
That said, I wouldn’t wait until this bitcoin ETF is introduced to speculate on bitcoin.
By buying bitcoin now, you could front-run this coming tidal wave of institutional money.
Just remember to treat bitcoin like a speculation. This means you should keep your position sizes rational… and never bet more money than you can afford to lose.
July 11, 2018
P.S. If you’re still on the fence about owning bitcoin, you need to mark July 19 on your calendar. That’s when world-renowned crypto expert Teeka Tiwari will give a special live broadcast—“The Great Cryptocurrency Conspiracy of 2018.”
He’ll be joined by media personality Glenn Beck in what’s sure to be our biggest event of the year. And the best part is, it’s completely free to sign up, hear what they have to say, and get three free crypto recommendations… Click here to reserve your spot today.
Do you own bitcoin? Are you going to speculate on it after reading today’s essay? Let us know your thoughts on the crypto space—and a potential bitcoin ETF—right here.