- Bloomberg Strategist Mike McGlone believes the US could approve its first Bitcoin ETF in late October.
- Approval would see Bitcoin skyrocket to $100,000 by the end of the year.
The US Securities and Exchanges Commission (SEC) could approve the country’s first Bitcoin ETF, dubbed BTF, by October, according to Bloomberg Intelligence commodity strategist Mike McGlone.
McGlone said Tuesday that there is a high probability that US regulators will soon follow Canada by allowing cryptocurrency ETFs, including Bitcoin ETFs, especially due to mounting pressure from investors. McGlone was speaking in an interview with during an interview with Stansberry Investor host Daniela Cambone.
Bitcoin ETFs are perfect for investors switching from traditional assets
According to McGlone, who believes Bitcoin will reach $100,000 in 2021, the reallocation of capital from gold to Bitcoin and Ethereum in 2021 has been tremendous and vastly underestimated. He also pointed out that cryptocurrency’s limited supply has overtaken precious metals.
One of the factors that support creating a Bitcoin ETF in the US stock market, which McGlone said is “due for a wobble.” This will force the Federal Reserve to issue more quantitative easing and push even more investors to crypto-assets like Bitcoin to preserve value.
Meanwhile, Canada’s three ETFs are gaining popularity and helping the country solidify its competitive edge over the US. Additionally, some of the capital is going into institutional cryptocurrency products developed in Canada.
The good news, according to McGlone, is that US regulators will not want to stay on the sidelines any longer. While answering a question about when this might happen, McGlone said possibly by the end of October. He also said that the approval would most likely focus on a futures-backed product first, leading to massive capital inflow.
For the better part of 2021, McGlone has used the status of the US stock market to offer Bitcoin price predictions, all favoring BTC’s upward price action, despite its short-term volatility. He believes that his prediction about Bitcoin going to $100,000 in 2021 will be sparked by the approval of Bitcoin ETF.
Over 10 US companies have filed for Bitcoin ETF approval
The US lawmakers would not have to look far for Bitcoin ETFs, as many companies have applied not only for BTFs but for Ethereum ETFs and, most recently, DeFi funds.
Atlanta-based firm Invesco recently filed to register Invesco Galaxy Bitcoin ETT, joining Galaxy Digital Funds in the appeal. Moreover, Illinois-based Amplify ETFs filed another request to add DeFi-focused open-end ETF funds offerings to its Amplify ETF Trust. Other Bitcoin ETF applicants include Fidelity, VanEck, Valkyrie Investments, Ark Investments, NYDG, SKybridge Capital, Wisdom Tree, Kryptoin, Global X, One River, and Bitwise.
ETFs are publicly traded investment vehicles that track the performance of an underlying asset or index. They are traded on the traditional stock exchange. All three Bitcoin ETFs in Canada use the Bloomberg Galaxy Crypto Index (BGCI), which tracks the performance of the largest digital assets traded in USD.
A Bitcoin ETF works in a similar way, allowing investors to buy shares in the ETF through brokerage firms and trade them as any regular company stocks. Such an ETF provides exposure to digital currencies to regular and institutional investors who would otherwise not touch cryptocurrencies for various reasons, such as the perceived complexity of cryptocurrencies or unclear regulations around crypto investments. This would lead to a significant capital inflow into the Cryptocurrency market and a significant price upswing.
Crypto influencer Crypto Lark also thinks that a Bitcoin ETF will push BTC to $100,000 in 2021.
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