BTC Surges Past $51,000, Don’t Get Caught Empty Handed | The World’s FIRST Bitcoin ETF Will Change The Game

Bitcoin ETFs are a long-awaited addition to the crypto sphere and despite numerous application attempts, Valkyrie Digital Assets is the most recent asset management firm to have their application to develop a Bitcoin ETF denied by the SEC — an application in a sea of many. Numerous firms have been denied over the years and yet funds continue to file Bitcoin ETF applications reflecting an unwavering commitment to the goal and its potential returns.

That all changed with a major breakthrough as the Ontario Securities Commission recently cleared the launch of the Purpose Bitcoin ETF, the world’s FIRST bitcoin ETF to receive regulatory approval. The ETF is off to an incredible start with $564M AUM and is already one of the top ETFs trading on the TSX.

Currently, the total AUM stands at $1.28 B with the ETF hitting the $1B mark in just a month after launch.

Under the management of Purpose Investments, the ETF will give investors a direct line to BTC and will be traded under the ticker BTCC on the Toronto Stock Exchange.

Most significantly, the Purpose Bitcoin ETF enables investors to bypass significant hurdles such as custodial and asset management requirements with Purpose Investments managing the ETF and Gemini acting as a sub-custodian to secure assets via cold storage.

See the fact sheet here for more details on this significant landmark for BTC as institutional money continues to surge amidst FOMO.

This huge development has surpassed our expectations and comes with some surprise as the Ontario Securities Commission (OSC) has gone under the radar, with all eyes glued to the OCC. Canadian liberal regulators historically lead the pack with forward-thinking approvals, with the US following shortly after.

An expedited Bitcoin ETF approval in the US would be unsurprising as American money moving north may not bode well with US regulators. Much of the recent injection of optimism into this niche can be attributed to Gary Gensler, the newly appointed head of the SEC, who brings a comprehensive understanding and optimism surrounding cryptocurrency to the role. The SEC is still monitoring this “new asset class,” in an effort to illuminate its relationship with existing markets while awaiting further guidance from the new administration in the US.

SEC Commissioner Hester Peirce AKA Crypto Mom, who is known for her pro-crypto sentiments, has affirmed the demand for a US-based Bitcoin ETF, brushing off security concerns and potential misappropriation as being overblown. With the rollout of a fully legal framework for a Bitcoin ETF and collaboration between both Peirce and Gensler, a potential easing on the SEC’s rigid position is foreseeable.

ETF approval is a significant milestone in cryptocurrency maturation and is a major bullish signal for the cryptocurrency space as a whole.

With our previous BTC Exclusive providing a ticket to the incredible BTC bull run at just $12,000, the newest horde of BTC holders is reveling as BTC rallied past $51,000 and now boasts a market cap of over $940B. This blistering pace has Bitcoin poised to be the first cryptocurrency to reach a market cap of $1T as the #6 ranked global asset now trails only Alphabet, Amazon, Microsoft, Saudi Aramco, and Apple.

At ProBit Exchange, our outlook on the cryptocurrency space is optimistic for 2021, especially if legislation and dialogue remain in crypto’s favour. Be among the last early adopters and ahead of the curve and start building your portfolio at ProBit Exchange today. ProBit Exchange offers numerous attractive entry points into the crypto market with discounts and events surfacing daily.

Trusts and ETFs

So what exactly is an ETF and what was offered in its place?

In the traditional financial world, an ETF represents a collection of securities which is traded on exchanges. ETFs inherently offer diversification and typically result in lower transaction costs rather than purchasing each share individually. Funnelling capital into an ETF provides direct exposure to spot prices of underlying assets, a huge breakthrough for the many investors who are unable to purchase BTC and other cryptos directly.

As Bitcoin ETFs were prohibited globally, trusts emerged to fill the voracious demand within the traditional financial realm. The Greyscale Bitcoin Trust (GBTC) offered a palatable investment vehicle for both institutional and retail traders, but while trusts may appear similar on the surface, they have substantial operational differences that can make them less desirable for prospective traders.

The GBTC trades at a large premium and tracks the price reflexively. This resulted in GBTC growth as it offers an inexpensive, familiar trading option for newcomers. Part of this growth may have also been attributed to the lack of stiff competition, although the game has changed with the launch of an ETF and competing entities such as the recently opened Osprey Bitcoin Trust (OBTC) looking to quickly close the gap.

ETFs offer a convenient trading option with reduced costs, increased liquidity, and lower compliance risk, effectively bridging the gap between crypto and traditional finance.

A Fusing Of Two Worlds

Mainstream acceptance of Bitcoin is rapidly growing as Wall Street realizes its growth and disruptive potential. Despite ATHs and record growth, a stark bifurcation still exists between the crypto world and its traditional finance counterpart. This is partly due to the crypto market still holding an underwhelming position relative to the fiat-based economy.

The development of an ETF in the US could help foster a congruent relationship between these two distinct bodies offering a safer option for broad retail participation ultimately bolstering BTC value and crypto as a whole.

Despite no single product or service having the ability to transform an entire market sector, ETFs have been a desired addition to the crypto world for their added liquidity benefits. It is a promising development that should not be pushed under the rug.

Don’t miss the bus. Huge returns are not out of the question for 2021, as perceptions of BTC become increasingly more animated and optimistic.

Will the SEC follow suit and approve an ETF? Will more institutional money continue to flood the sector? Will new partnerships with leading cryptocurrencies on par with Reddit’s recent deal with the Ethereum Foundation actualize?

Much is still up in the air, but what we know with certainty is 2021 is showing a lot of promise. Don’t get caught empty-handed.