Big Wall Street firms are lining up to launch bitcoin funds, including Fidelity Investments, BlackRock, Invesco, and WisdomTree. These companies are seeking approval to introduce exchange-traded funds (ETFs) that invest in bitcoin. If approved, these ETFs could attract mom-and-pop investors to put their retirement funds into cryptocurrency.
However, the approval of these funds depends on a court case currently before the U.S. Court of Appeals, likely to be decided in the fall. If the ETFs get approved, a wave of them is expected, potentially leading to a surge in demand for bitcoin.
Amidst this development, owning shares in Grayscale Bitcoin Trust (GBTC) could be an attractive option. GBTC already acts as a bitcoin ETF in waiting, and if it converts to an ETF, its share price could significantly increase. Presently, GBTC’s bitcoins are worth almost 50% more per share than its actual share price due to its structure. As an ETF, GBTC would be able to buy back shares at fair value, aligning its share price closer to its net asset value.
The case for bitcoin’s long-term value is still a subject of debate. Some investors believe it could rise further, while others think its value might ultimately be zero. As such, investing in bitcoin is a gamble, but if one were to do so, GBTC could be an appealing choice due to its potential price appreciation if approved as an ETF.
