Our neighbors to the north beat us in legalizing marijuana.
Now they just beat us in one area of bitcoin.
And by the way, bitcoin again set new all-time highs this week and topped the $1 trillion market value for the first time. The first and biggest cryptocurrency is up more than 350% in six months, more than 200% in three months, and more than 50% in one month.
I will say that it popped through $50,000 faster than I thought it would, and I have little doubt that it will hit $100,000 … quite possibly sooner than later.
So as the great cryptocurrency awakening continues, how exactly did Canada beat us?
Well, the first bitcoin exchange-traded fund (ETF) in North America started trading Thursday on the Toronto Stock Exchange. It’s called the Purpose Bitcoin ETF, and it trades under the symbol “BTCC”.
Investors ate it up. It was one of the most active securities on the exchange that day, with nearly 10 million shares — about $165 million worth — changing hands.
This should come as a surprise to exactly no one.
Let me explain why the U.S. is behind, and what you should do instead …
There is plenty of interest in a U.S. bitcoin ETF. That’s not the problem.
Bitcoin pioneers Cameron and Tyler Winklevoss tried to start one way back in 2013, but it was rejected by the Securities and Exchange Commission (SEC).
They tried again in 2018 and still got rejected. Others have tried as well, including Bitwise, Direxion, and GraniteShares.
In August 2018, the SEC rejected nine bitcoin ETF proposals … in one day!
Firms haven’t given up. VanEck filed an application with the SEC, and four weeks ago today Valkyrie Digital Assets also filed for a fund to be listed on the New York Stock Exchange.
For the last eight years, the party line from the SEC has been concerns over volatility, manipulation, and proper oversight.
It’s baloney. There’s nothing bad about a bitcoin ETF. The government just doesn’t want to get involved in something it doesn’t understand.
But that’s changing.
I think Canada’s willingness to approve a bitcoin ETF puts some pressure on U.S. regulators to catch up to reality.
The crypto awakening is early, and with few regulations in place, it is a bit like the wild west. But I think this is about to change as well.
I expect to see more regulation on cryptocurrencies, which is not necessarily a bad thing. In fact, it could be a positive if regulations increase confidence in the burgeoning space.
It’s critical that any regulations be smart and not stifle innovation or limit accessibility. Well-crafted regulations could help bitcoin and altcoins — which hold even bigger potential — grow safely.
For that to happen, we need regulators who understand the blockchain technology that cryptocurrencies are built on and its potential to improve so many areas of our lives. We need the person in charge to not just have heard of blockchain but possess a deep understanding of it … and its inestimable value.
With President Biden’s nomination of Gary Gensler as the next SEC chairman, we probably got the best-case scenario. He is a professor at MIT who has taught a course on blockchain, so he clearly understands the technology and its applications.
He previously served as chairman of the U.S. Commodity Futures Trading Commission in the Obama administration and is known as a tough regulator. But the key here is that I feel reasonably assured that forthcoming crypto regulations will be well thought out and help provide an environment for innovation to continue.
That would be huge. The worst thing we want at this point is for anything to squash blockchain’s potential … and the massive opportunity for smart investors in the best altcoins.
Cryptos and blockchain are going to change everything. The way you buy everyday goods and services … purchase a home … pay your taxes … even how you order a pizza.
This transformation is already underway, which is why bitcoin continues exploding to record highs.
My friend Charlie Shrem and I think bitcoin’s rally in the form of multiple breakouts the last few months is one of the most important events in the cryptocurrency sector since bitcoin started it all in 2009. And Charlie was around practically at the beginning.
The action proves that bitcoin and its smaller peers — the altcoins we follow in Crypto Investor Network — are here to stay. In fact, altcoins have even bigger potential than bitcoin. The altcoins in our portfolio have surged nearly 300% on average in the last five months.
We think that’s just the start. The truly seismic shift — when the massive profits are made — is coming as businesses, consumers, big-money investors, and even the government and regulators realize what’s going on.
North America’s first bitcoin ETF is a great start … and I do expect a bitcoin ETF in the U.S. one day, too, which will be even better. But time waiting for one is time wasted.
There is a massive amount of money flowing into cryptocurrencies right now as bitcoin and altcoins cannot be ignored by large firms anymore. We’re seeing more money managers, hedge funds, large institutions, and even publicly traded companies turn to cryptocurrencies and the blockchain technology that they run on.
This big money realizes that if they don’t adopt a plan today, they will be left behind.
The same is true for smart investors. Not investing in cryptocurrencies and the blockchain today would be similar to not investing in the advent of the internet.
ETFs will come, but now is the time to be at the forefront of the next big technological revolution moving into the mainstream in the Roaring 2020s.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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