The SEC gives the green light to Bitcoin Spot ETFs, and there is a rush into bitcoins orchestrated by the magicians of financial assets. According to our counters, ARK Invest has managed to stack 17,790 BTC so far. Cathie Wood, the brain behind the ARKB ARK 21Shares Bitcoin ETF, unveils her latest annual issue, where she pulls out of her hat a forecast of the BTC price flirting with $2 million. What a great show!
A new Bitcoin ATH in sight thanks to ETFs?
Market prophets predicted that the SEC’s approval of Bitcoin spot ETFs on January 10 would trigger a bullish frenzy for the queen of cryptos. But lo and behold, BTC only briefly climbed around $49,000 before falling back below $40,000. General disappointment!
However, we concede that BTC trackers have accelerated the multiplication of bitcoins among the big whales of Spot ETFs such as BlackRock, Fidelity, Grayscale and ARK Invest. And speaking of ARK Invest, the latest delivery of their nuggets reveals that the rules of the game have been completely turned upside down in the realm of institutional investors and their little nest egg in BTC.
In this 163 page document entitled Big Ideas 2024, ARK Investments has devoted 18 pages to the theme “Bitcoin Allocation” in which the answers to this question are highlighted: “ What would be the impact of a bitcoin allocation? »
Answer : ” An allocation of 250 trillion in investable assets to bitcoin would have a significant impact on its price. »
The graph above supports that:
- 1% allocation of bitcoin as an investable global asset allows a prediction of BTC at around $120,000;
- 4.8% average allocation rhymes with $550,000 per BTC (average maximum Sharpe Ratio from 2015-2023);
- and 19.4% BTC allocation equals $2.3 million (Maximum Sharpe Ratio 2023, 5-year rolling horizon).
The HODL will always pay off in the end
Here’s how ARK Invest experts assess long-term holding (or HODLING) of bitcoins.
“ Bitcoin’s volatility can mask its long-term returns. Although significant appreciation or depreciation can occur in the short term, a long-term investment horizon has been key to investing in bitcoin. Rather than asking ‘when’, it is better to ask ‘for how long’. Historically, investors who have purchased and held bitcoin for at least 5 years have profited from bitcoin, regardless of the date. »
So HODL pays off even if it requires patience.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
