• Economist Alex Krüger believes that the BlackRock Bitcoin ETF filing is an easy trade for BTC bulls.
• Last Thursday, BlackRock submitted a spot Bitcoin ETF application to the SEC.
• Gold’s price skyrocketed after the approval of its first American ETF in 2004.
Economist Bullish on Blackrock BTC ETF Filing
Economist and crypto trader Alex Krüger thinks the recently filed BlackRock Bitcoin (BTC) exchange-traded fund (ETF) represents one of BTC’s “easiest long entries of the year.” He is also convinced that the U.S. Securities and Exchange Commission (SEC) will approve it in 2024.
Previous Attempts at Bitcoin ETF Approval
So far, no spot Bitcoin ETF applications have been approved by the SEC, despite submissions from Grayscale, VanEck, and Cathie Wood’s ARK Invest. However, two Bitcoin futures ETFs were approved last October 2021.
Gold’s Price Increase After First American ETF Launch
The first gold-backed ETF in America was launched on November 18th 2004 which resulted in a 318% increase in gold prices within seven years. Although this could be attributed to an increase in monetary policy and inflation expectations at that time, it is believed that this ETF enabled such flows as well.
Current Price Action
At present Bitcoin is trading at around $28,748 with a 6.5% increase over 24 hours at time of writing..
Conclusion
It remains to be seen what effect if any the eventual approval of a spot Bitcoin ETF may have on prices but many investors are optimistic about its potential impact on both retail and institutional investment into cryptocurrencies overall