Bitcoin Spot ETF is approved by the SEC. What should we do when Bitcoin ETF is approved? We will discuss this topic in this article.
New Era of blockchain history
We don’t have this event in the history of cryptocurrency so you can’t predict based on previous history. But, we can see the history of gold. The story of gold spot ETFs is a fascinating journey of financial innovation and changing investor preferences.
When the first gold spot ETF, SPDR Gold Shares (GLD), was approved in the US in November 2004, the gold price stood at around $400 per ounce.
Following the approval, the gold price saw a significant surge, exceeding $700 per ounce by August 2005 and eventually peaking at over $1800 in 2011.
As you can see, Gold needed 7 years to peak after the Gold Spot ETF was approved in the US. Similarly, Bitcoin also takes many years to reach a new value for long-term growth.
What should we do when Bitcoin ETF is approved?
Bitcoin has reached $49,000 after the first day of Bitcoin Spot ETF trading in the US. But you need to be careful about this. We’ll talk about some issues to keep in mind right now.
The first problem is that we should not be FOMO. This is very important, Bitcoin cannot increase in price quickly after the Bitcoin Spot ETF is opened for sale in the US. Everything takes time. Gold tried it, Bitcoin can do the same.
The second problem is that you must have money to continue buying more bitcoin when bitcoin is adjusted. For short or long term use, after a price increase there will be adjustments.
Third issue, you should hold bitcoin long term. It both saves time and is safer than focusing on short-term investments.
If you are a fan of DCA, you can still DCA in the long term and not worry about anything because Bitcoin is officially accepted through the Bitcoin Spot ETF.
Conclusion
All opinions in this article are solely the personal opinions of the author and do not constitute investment advice. But I hope it can give you some more perspective on the future bitcoin market.