Fundstrat analyst Tom Lee recently told CNBC that he expects Bitcoin (BTC 5.90%) to finish the current year "well above $100,000." While somewhat vague, that forecast implies at least 5% upside in December from its current price of $95,000.
How the new launch of options has impacted iShares Bitcoin Trust ETF around its one-year anniversary.
I'm comparing Bitcoin ETFs, starting with ARK 21Shares Bitcoin ETF, against the iShares Bitcoin Trust ETF, the largest and most liquid option. ARKB offers one of the lowest expense ratios at 0.21%, making it cost-effective for investors. However, it has a higher bid/ask spread (0.05% vs. IBIT's 0.02%). While both ETFs saw significant inflows during the Bitcoin bull run, IBIT's AUM growth outpaced ARKB, in my view due to BlackRock's strong Bitcoin advocacy and market dominance.
The launch of options on IBIT on 19 November 2024 marks Bitcoin's solidification as a legitimate asset class. A gamma vanna squeeze, a highly reflexive process induced by options and dynamic hedging, could materialize over an absolutely scarce asset. The growing adoption of BTC as a treasury asset is another catalyst which will at the very least set a price floor. It is likely to trigger a supply shock.
Could This Exchange-Traded Fund (ETF) Be a Millionaire Maker?
Is iShares Bitcoin Trust ETF a Millionaire Maker?
Trump's victory in the US presidential election has pushed the price of Bitcoin higher on the back of a more pro-Bitcoin environment. Trump's administration is likely to support cryptocurrencies, enhancing Bitcoin adoption and providing regulatory clarity, making IBIT a strong buy. Bitcoin's price surge post-election reflects market anticipation of Trump's crypto-friendly policies, including a national Bitcoin reserve and reduced regulatory pressure.
With most of 2024 in the rearview mirror, the ETF landscape looks set to mark another big year. Should ETF flows continue their strong pace, they could not only hit a new record, but also surpass $1 trillion for the year.
Bitcoin's performance is influenced by political outcomes; a Trump win is seen as more bullish due to his pro-crypto stance and policies. A Harris administration is expected to maintain the current crypto environment. While less bullish, it shouldn't hinder Bitcoin's growth. Long-term holders should ignore election volatility, while potential buyers might wait for a less risky entry point after the election results.
What caused Bitcoin-related stocks to soar in October? Here's an overview of what moved the Bitcoin-based markets last month.
After a prolonged consolidation, Bitcoin has re-asserted its market leadership this week. The crypto king has broken out of a flag-like consolidation pattern and looking at new highs.
These might be the only ETFs you'll ever need.