Entering the official “playground”, will the price of 1 Bitcoin rise to 12 billion VND?

U.S. regulators have officially allowed the establishment of cryptocurrency ETF investment funds. It also means hundreds, if not trillions, of dollars of legitimate money flowing into this channel. Dong is expected to grow to 500,000. The financial and banking industry enters the official “arena” and the price of 1 Bitcoin will rise to 12 billion VND? Manh Ha • {Published Date}US regulators have officially allowed the establishment of digital currency ETF investment funds. It also means hundreds, if not trillions, of dollars of legitimate money flowing into this channel. Bitcoin is expected to reach $500,000/BTC.

The turning point after a long journey

After months of waiting, on January 10, the U.S. Securities and Exchange Commission (SEC) approved the establishment of an exchange-traded investment fund (ETF) for spot investment in Bitcoin currency, shocking investors in the world’s financial markets.

This is a turning point for the world’s largest cryptocurrency and the cryptocurrency industry as a whole.

Therefore, it took a long time for financial institutions to gain official status as an investment channel for buying and selling cryptocurrencies on stock exchanges, thus attracting a large number of investors. Cash flows are expected to be very large.

With the SEC’s decision, cryptocurrencies have been officially recognized on mainstream financial platforms. Institutions can set up Bitcoin exchange-traded funds in the United States. This has been a contentious issue in the United States because cryptocurrencies are often highly volatile and are associated with many other risks, including money laundering.

The SEC’s decision enables Grayscale Bitcoin Trust, the largest asset management fund in the United States, to convert $29 billion in cryptocurrencies into ETFs. A number of other funds from organizations including BlackRock’s iShares and Fidelity will also be launched. Some funds began operations as early as January 10.

According to Reuters, the SEC quickly approved 11 applications to open spot Bitcoin ETFs, including those from giants BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck.

The U.S. Securities and Exchange Commission (SEC) has approved the creation of spot exchange-traded funds (ETFs) to invest in Bitcoin. (Photo: CNBC) ETFs are poised to be a game-changer for the digital currency Bitcoin. It will help investment institutions and individuals gain access to the world’s largest cryptocurrency without directly holding Bitcoin.

This is also expected to be a driving force for the cryptocurrency market after several years of turmoil, with a series of scandals involving the spontaneous exchange FTX (Sam Bankman-Fried) or Binance…

A long time ago, since 2013, many asset management companies have applied to open EFT funds. But these institutions were rejected by the SEC because they believed this type was too sensitive to market fluctuations.

But by the end of 2023, after a period of intense discussion and wooing, the U.S. securities regulatory agency SEC sent a positive signal, thus setting off a Bitcoin investment boom.

According to data from Coinglass, Bitcoin investment rates surged across most exchanges in 2023. Bitcoin rose a total of 170% in 2023, reaching $45,000 on January 1, 2024.

Ten years after the idea of ​​a Bitcoin spot ETF was born, it is now a reality. With the advent of ETFs, the future of the cryptocurrency space is even brighter.

Andrew Bond, an expert at Rosenblatt Securities, told Reuters that allowing the establishment of a Bitcoin spot ETF would help strengthen Bitcoin’s status as an asset class. It also facilitates rapid legalization of the currency.

Will Bitcoin hit $500,000/BTC?

On CNCB, Tom Lee, co-founder and chief strategist of Fundstrat Global Advisors and a well-known Wall Street analyst, said that Bitcoin will quickly rise from the current $46,000 to $150,000 in 12 months and to $500,000 in 5 years. /BTC, equivalent to more than 12 billion VND/BTC.

Fundstrat Global Advisors is an independent financial research firm specializing in cryptocurrency and blockchain research.

In a recent report, Standard Chartered predicted that spot Bitcoin ETFs could attract $50-100 billion in investment capital in 2024 alone, which could push Bitcoin prices to $100,000.

In November 2021, copper prices hit an all-time high of $69,000, but then plummeted.

Despite the shocking news from the SEC via ETF funds, Bitcoin was not seeing much movement as of the morning of January 11th. BTC rose just over 1% to $46,540, well below investor expectations.

Many people did not expect the increase to be so low, around 1%, and were worried that if the currency did not rise after holding the ETF for a period of time, short selling would likely occur, pushing the price down deeply.

Some experts believe that cash flows into Bitcoin will not change much, other than a shift from direct investment on exchanges to ETFs. Switching costs also remain to be seen. The risks of digital currencies are still huge, and they are not that different from meme stocks (stocks favored by retail investors on social networks).

Many investors still consider investing their money in cryptocurrencies, such as buying lottery tickets or meme stocks.

SEC Chairman Gary Gensler said in a statement that approving the ETF is “the most sustainable path forward.” However, he did not forget to add that the agency does not support Bitcoin because it is a high-risk and unstable currency.

A report by Crypto Crunch App at the end of 2023 ranked Vietnam third in the world in terms of the number of virtual currency holders, with nearly 26 million people, behind India (nearly 158 million people) and the United States (44.3 million people). people). In recent years, China, which has a population of 19.9 million, has introduced a number of measures to restrict virtual currency transactions. Cryptocurrency trading is not legal in Vietnam, is completely voluntary, and is not taxed.

>> Why has Bitcoin increased in value by 67% since September?