Bitcoin price hit new all-time highs across the world last week. New highs were seen in the major currencies such UK, Australia, Japan, South Korea, Norway, China, and India. Even in SA, Bitcoin hit a new high in rand terms of over R1.2 million per bitcoin.
Why has Bitcoin soared? And how high can it go in 2024?
Let’s find out…
A record-breaking ETF launch. By now, you probably know that Bitcoin spot ETFs (exchange traded funds) went live on 10 January.
Blackrock, Fidelity, and a host of other traditional money managers can now offer Bitcoin exposure to their clients.
What you might not be aware of, is just how successful they’ve been so far.
Demand for the new Bitcoin investment vehicles has been off the chart. Just look at the comparison between gold’s first ETF launch and Bitcoin’s…
BlackRock’s Bitcoin ETF has recorded more than $7 billion in net inflows!
This is exactly what we predicted in November’s 2023 issue of the South African Investor.
This demand has fed into the price, with Bitcoin making its largest one-month gain of +44% on record in February.
And now even more bigwigs on Wall Street — even the sceptical ones — have started taking notice.
Multi-billion-dollar banks enter the Bitcoin ETF game…
With $1.2 trillion assets under management, Morgan Stanley recently fast-tracked a new fund to allow its investors some access to Bitcoin ETFs.
This is big news as Morgan Stanley’s is one of the largest US broker-dealer platforms.
Although billions of dollars have already been invested in Bitcoin Spot ETFs so far, the investment floodgates could really burst open when bitcoin ETFs are offered by big, registered investment advisor (RIA) networks and broker-dealers.
Think Merrill Lynch, Wells Fargo and others.
Wells Fargo has some $600 billion in assets under management, while Merrill Lynch manages more than $1 trillion.
As of now, select wealth management clients belonging to Wells Fargo and Merryl Lynch can access Spot bitcoin ETFs on their platforms.
I expect both banks to open the floodgates for its other clients as demand and interest for Bitcoin from investors soar.
Add in the coming Bitcoin halving next month and Bitcoin’s rally is far from over.
That’s why consensus in the crypto market believe Bitcoin could hit $150,000 and higher in 2024.
So, if you don’t own any, you still have time to buy. To make sure you have the inside track on Bitcoin, crypto and what and when to buy, make sure you’re subscribed to South African Investor!
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