The important economist Alex Kruger has just addressed BlackRock’s latest move. Check out what he had to say about this below.
Alex Kruger addresses BlackRock’s applying for a BTC ETF
According to economist and crypto trader Alex Krüger, the recent filing for a Bitcoin (BTC) exchange-traded fund (ETF) by BlackRock presents a highly favorable opportunity for investors to enter the market.
BlackRock, the world’s largest asset manager, submitted the application for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC) last Thursday.
Despite the significant news, Krüger notes that many traders have overlooked this development. He expresses confidence in his “gut feeling” that the SEC will approve BlackRock’s application in 2024.
Despite proposals from Grayscale, VanEck, and Cathie Wood’s ARK Invest, none of the Bitcoin spot ETF applications have been sanctioned yet. However, in October 2021, the SEC did authorize the introduction of two Bitcoin futures ETFs.
Krüger highlights that gold’s price surged after the initial acceptance of its American ETF. Nevertheless, he advises that the fund was not the main factor behind the rise.
“The first gold-backed ETF in the US, GLD, was launched on Nov/18/04. Gold skyrocketed soon after, clocking a 318% increase in seven years.”
He continued and said the following:
“Bear in mind the main drivers of gold at the time were monetary policy and inflation expectations; the ETF simply enabled the flows.”
Bitcoin in the news
Traders are currently experiencing significant losses as Bitcoin (BTC) surpasses the $30,000 price level. Coinglass, a crypto tracking platform, has reported that over $207 million in positions have been liquidated in the past 24 hours.
Majority of these losses, amounting to $173 million, come from short positions, while long investors have incurred over $34 million in losses.
Binance, the world’s largest crypto exchange, saw the highest amount of liquidations at $41.1 million followed by OKX which saw just over $11 million. Data shows that the single largest liquidation occurred over crypto exchange BitMEX for $9.3 million.
