A new era of crypto trading kicked off on Wednesday 10th January 2024, after the Securities Exchange Commission (SEC) approved the much-awaited Bitcoin ETF. It is a new dawn for investors as this development allows more people worldwide to buy and sell Bitcoin. Thursday, which marks the debut of Bitcoin ETF trading on Wallstreet saw a huge volume of at least $4.6 billion in volumes. This signifying the appetite among the issuing firms to grab more market share of the Bitcoin and offering the asset to their target investors.
In fact, many of the Bitcoin ETF issuing firms have slashed their management fees with some offering zero fees for a specified period. Additionally, other asset management firms have resorted to publicizing the cryptocurrency through eye catching advertisements. Overall, the race to acquire Bitcoin is on and it is important to consider why the premier cryptocurrency is gaining popularity among investors both retail and institutional investors.
a. Scarcity
Bitcoin has a fixed supply of 21 million coins making the cryptocurrency a scarce asset. Even though the price is volatile, over the years it has shown a steady rise making it a reasonable asset attracting investors looking for alternative investment vehicles.
b. Volatility
Yes, volatility of Bitcoin is among the reasons, it’s attracting attention from investors. The price fluctuation of the asset especially over short period with lucrative returns makes Bitcoin popular among investors. However, the risk is also high with the cryptocurrency.
c. Decentralization
Investors who are willing to store their wealth or move funds with ease and utmost privacy are turning to Bitcoin compared to using traditional finance systems.
d. Increased Institutional Adoption
Major financial institutions like BlackRock, Fidelity and Grayscale are showing increased interest and actually buying huge number of Bitcoins. Even governments such as El Salvador has made Bitcoin it’s legal tender. This points to increased credibility in the cryptocurrency hence fueling further investor interest. All this points to a growing stamp of the cryptocurrency legitimacy notwithstanding it’s volatility and now with the regulators nod, through the ETF, investors can proceed to buy some Bitcoin indirectly
without worry of losing funds and need for technical know-how required to handle the cryptocurrency directly.
e. Macroeconomic Factors
Economic uncertainties that followed by the COVID-19 pandemic, low interest and later monetary stimulus packages have all contributed to increased popularity of Bitcoin among investors.
Therefore, having considered the above factors and now the Bitcoin ETFs approval past us after a decade long on the wait, It is important to highlight that we now await the next key Bitcoin event. This will be the Bitcoin Halving, happening in less than 100 days.
Coupling these two key factors which are bound to create pressure on the demand and price of Bitcoin, it is important for anyone interested to make a Bitcoin purchase from binusu.com. Noteworthy you can buy any amount from as little as $10, or go for a recurring buy which allows investors to stack bitcoins irrespective of its prevailing price as a long-term investment strategy.
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