– The Valkyrie Bitcoin Strategy (BITO) will be the first Bitcoin futures to launch in the US
– Although not currently approved by the SEC, the is scheduled to list this upcoming week on the market
– The is futures-based which means investors will be trading for a share of a set of assets based on a contract, not for the asset itself
– Futures-based ETFs allow investors to easily diversify their portfolio without the risks associated with the security and tax implications of holding physical assets (also leverage/high liquidity is a plus)
– Other than the fact that you don’t actually hold the commodity, the biggest con seems to be trading/management fees. Risks are like always.
– News of launch could also pave the way for a physical ; currently Grayscale plans to file for SEC approval on this soon
IMO this will have a positive effect on the crypto space as it introduces a new market that can make the process of entering crypto ‘easier’ for some. I also believe that it’ll bring a lot of attention to Ethereum and the price of Ether.
That said, I marked out a double-bottom pattern that looks similar to where we’re currently trading. Although this could push us down to ~3300, I don’t see it happening unless there’s a drastic drop within the next 1-2 days. Yes, daily is slowly converging but I still believe that we’ll end the month around 4k which allows for a very short window on a second dip. Holding out seems like the best option at this point.