The Bitcoin ETF Is Here

Although absolutely NOTHING with Bitcoin has changed in the last 8 years, it still took the SEC 8 years to finally approve a legitimate Bitcoin ETF.  It is done, it is final and it will start trading next week.

ProShares should have the green light on Monday but that does not necessarily mean they will open the doors to start trading on Monday.

There are tons of Bullish analysts all touting how this will let investors get exposure to Bitcoin.  To clarify, this means that investors that have all their capital tied to the financial markets as opposed to individually set up personal accounts will now have a much easier path to Bitcoin Exposure.

They should be trading under the ticker BITO.


Futures and Futures ETF

The difference between these two instruments comes down to SETTLEMENT.  Settlement refers to what happens when the contract expires.  For the current CME Futures that we refer to all the time, the settlement is in Cash.  That particular instrument only follows an index of Bitcoins price.  They do not buy or sell Bitcoin directly.

An ETF on the other hand – even an ETF that is dealing with Futures – WILL settle in Bitcoin or at least will need to Buy and Sell Bitcoin directly in order to satisfy the underlying asset.

In this regard, it should technically add Buy Pressure to Bitcoin.  But, Not so Fast.  Because it’s an ETF, there is the ability to SHORT the underlying asset and in that case, you will add Sell Pressure to Bitcoin.

So, What Now?

The SEC has been sitting on their hands for eight years because they claim that Bitcoin is not transparent enough to protect investors from manipulation and fraud.

That statement can only make someone sick to their stomach as they just greenlighted Bitcoin to the Worlds Biggest Frauds and Manipulators.  

The SEC has done NOTHING to protect investors, in fact, they go out of their way to HURT retail investors and this was clearly on display during the Robinhood/GME debacle earlier in the year.    The SEC has lost all credibility and standing with Retail Investors, something they were already on very thin ice, to begin with, especially after the handling of the Market Crash in 2008.

So what’s really at play here?  Seems like Control.  Why not let the big boys who dictate everything else in the world to now dictate the future of Crypto?  I guess it only seems right.

Practice Patience

This weekend certainly has a chance to be a wild ride.  It’s time to exercise caution and patience.  We really want to see how the market as a whole, with the 9-5ers, responds on Monday.  These guys are notorious for creating widespread FUD (Fear, Uncertainty, and Doubt) in order to tank a market that they are looking to enter.  Why pay $60K per Bitcoin when you can use lies, corruption, deceit, and every other widely used tactic to get the price down to say, $20K before you enter?  If you are looking for evidence, just read up on JP Morgan, Chase, Bank of America, and literally every major player who has denounced Bitcoin over the last 8 years.  They have been playing retail-like fools for their entire existence and not to bring it up again but What Exactly has the SEC done about it?  That’s right.  ABSOLUTELY NOTHING.

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