Bitcoin Heads for New Highs: ETFs That Will Follow

Bitcoin rose 154.25% in 2023, closing last year at $42,061.08 per token. Since bursting on the scene in 2010, Bitcoin has experienced unparalleled explosive and implosive price action.

In November 2021, the price rose to a record $68,906.48 per token, and one year later, it found a bottom 77.5% lower at $15,516.53. Meanwhile, Bitcoin has made higher lows and higher highs since the November 2022 low. In early 2024, the leading cryptocurrency eclipsed a critical technical resistance level at the March 2022 high of $48,187.21.

Bitcoin’s first spike to nearly $20,000 per token in late 2017 occurred as the CME approved Bitcoin futures, regulated by the Commodity Futures Trading Commission. The most recent rally came after the Securities and Exchange Commission approved Spot Bitcoin ETF products that increase the leading cryptocurrency’s addressable market. Instead of owning Bitcoin futures or holding the tokens in a computer wallet or on an exchange, investors and traders can now have exposure through standard equity accounts. The recent price action suggests Bitcoin’s price is on an express train to challenge the late 2021 high and could explode to the $100,000 level per token or higher before the latest rally runs out of upside steam.

Bitcoin’s ascent breaks above technical resistance

• Bitcoin moved above technical resistance at the March 2022 $48,187.21 high in January 2024.
• Bitcoin reached its most recent $57,327.06 high on February 27, 2024.
• At over $57,300 on February 27, Bitcoin is in a parabolic bullish trend.

 The market cap remains relatively small, with limited supplies

• The cryptocurrency asset classes’ market cap was $2.15 trillion as of February 27, 2024.
• Microsoft and Apple have market caps on either side of $3 trillion. Alphabet, Amazon, and NVIDIA have market caps above $1.7 trillion.
• Bitcoin accounts for 52.2% of the cryptocurrency market’s market cap.
• Bitcoin has a limited supply.

 GBTC is the most liquid Spot Bitcoin ETF product

• The Greyscale Bitcoin Trust (GBTC) has an over $22.7 billion market cap.
• GTBC trades an average of over ten million shares daily.
• GBTC charges a 1.50% management fee.

 Other Spot Bitcoin ETFs

• The iShares Bitcoin Trust (IBIT) has nearly $625 million in assets and trades an average of over 19 million shares daily.
• The Ark 21Shares Bitcoin ETF (ARKB) has over $12.5 million in assets and trades an average of more than 2.4 million shares daily.
• Other spot Bitcoin ETFs include BITB, FBTC, BTCW, BTCO, HODL, and BRRR.

 Even more ETFs that could follow the leading crypto higher

• RIOT and MARA are Bitcoin and digital currency mining platforms that move higher and lower with cryptocurrency prices.
• COIN is a leading cryptocurrency platform that moves higher and lower with Bitcoin and digital currency prices.
• BITQ holds shares of companies on the cutting edge of digital currency market innovations.

 While destiny looks likely to push Bitcoin’s price to new record peaks, remember the potential for substantial rewards comes with commensurate risks. As Bitcoin’s market cap rises, legislators and regulators could sound alarm bells that could lead to the next implosive decline.

Thanks for reading, and stay tuned for the next edition of the Tradier Rundown!