$Coinbase Global, Inc.(COIN)$
Written on this before a couple of months ago, when Bitcoin was going at $45k USD, before the ETFs were approved. Here are some thoughts since then:
On ETF approval:
ETFs have enabled more people who once did not have access to Bitcoin instruments to accumulate Bitcoin. Although this might not constitute a large part of individual holdings, it has already seen a $12.5 billion inflow. As more people get used to the idea of Bitcoin being traded on conventional securities markets, more people will start viewing this as an actual store of value, increasing it's intrinsic use case and solidifying the legitimacy of bitcoin.
Much talk about an Ethereum ETF going around the crypto circles. Overall I see this as a win for Bitcoin too as it further pushes the narrative of cryptocurrencies as a asset in general (although we might see some outflow from Bitcoin ETFs into Ethereum ETFs should that happen as people diversify their cryptocurrency holdings). Will not speculate too much till it's approved though.
Halving:
Nothing much to say here. Reduction of block reward size by half, miners cost/block increases. Less miner selling, coupled with increased demand due to increased accessibility = anybody's guess.
Prices of Bitcoin has historically gone up a few months after halvings. But crypto is crypto, and not for the faint of heart. Anything and everything that you think won't happen can happen in this space.
Final thoughts
It is my view that crypto deserves a place in every portfolio, as an alternative class of assets. The introduction of ETFs only made it easier and removed the excuse of "oh I don't know how to invest in crypto" from our dictionaries. It does however, remain an extremely volatile class of assets. Certain events (eg. Halving) can and are anticipated, and the results of these events are clearly known before the event itself. What is unknown, however, is how the markets will react to such events. Being exposed to the crypto market at a level one is comfortable with is the road I would recommend investors to take with regards to their general portfolio.
As usual, dyodd, and stay safe:)
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My stand has not changed. For those that bought and held bitcoin since this post, this is a reminder to continue to hold, and take profits SLOWLY. When bitcoin pumps it pumps hard, but the road up is a dangerous one, with many pitfalls along the way. Stay safe.