The Bitcoin Bull Market is powering ahead, and leading bulls say it is just the start. With current pricing more than $50,000, it is in nosebleed territory, a huge gain from 2014, when it was valued around $800.
The Bitcoin market has been retail investor-driven so far, but now institutions are jumping in. This makes it difficult to buy, so the price is rocketing skywards.
With big names such as Robert Kiyosaki, Elon Musk and Dave Portnoy singing the praises of Bitcoin and the surging price, it is both tempting and dangerous.
As institutions try to get into the game, they are applying what they know about traders and trading to the new investment field.
Institutions love exchange-traded funds (ETFs) so now they are starting to be be seen in the Bitcoin world.
Earlier this month, Bitcoin started trading in a Canadian ETF on the Toronto Stock Exchange (TSX). It trades as Purpose Bitcoin ETF (TSX:BTCC.B).
This ETF was set up to directly track Bitcoin movement. Investors who probably couldn’t work out now to get their own wallet jumped in, with the first day’s trading exceeding $260 million in shares. The first day opening price was around $10, closing at $10.54, but it has since dropped in two bounces, to just under $9.
The technicals on this ETF are currently neutral, but at $9, small non-geek investors can be part of the action at a low entry cost.
The upside will be smaller for those trading in the ETF, but the risk is currently much lower.
One question many bitcoin traders have asked is – “will the ETF be able to faithfully track the Bitcoin price.”