A new Bitcoin ETF has been approved and a new category of investors are about to get access to Bitcoin through the traditional market. The price of Bitcoin in 2021 is going to skyrocket.
The on-ramps for the entire crypto market keep expanding exponentially, this means that the amount of money that can come into the market is also expanding exponentially.
An American Bitcoin ETF has been approved, and this is neither a North American ETF nor is it of the United States.
Brazil has approved a Bitcoin ETF which makes it the first country in South America to get a Bitcoin ETF and the second country in the Americas to approve a Bitcoin ETF. This is great news because Brazil is the ninth biggest economy in the world and it is an economy with solid demand for Bitcoin products with a big under-representation of Bitcoin options when compared to the size of the economy.
A Bitcoin ETF is a stock exchange-traded product backed one for one by Bitcoin which allows for more investors to come in and buy Bitcoin. An ETF helps investors get exposure to Bitcoin. They are not buying the Bitcoin directly but they are buying the paper contracts representing that Bitcoin.
The Canadian Bitcoin ETF has surpassed one billion dollars in total Bitcoin under management.
There is a high possibility that the Brazilian ETF will be popular with investors and it will not take long before we see the Brazilian ETF also hitting a billion in total assets under management.
By the end of the year, we might have a dozen countries with Bitcoin ETF trading in stock exchanges. The USA Bitcoin ETF will most probably be the apex of all Bitcoin ETFs considering the size of the US economy.
Brazil has gone one step farther and has approved a cryptocurrency index fund. An ETF comprising six different coins; Bitcoin, Litecoin, Ethereum, Stellar Lumens, Bitcoin Cash, and Chainlink.
This act puts Brazil a step ahead of Canada and Canada currently is yet to approve two pending Ethereum ETFs that are with regulators.
On the other hand, Litecoin daily active user addresses have grown by over 6x since this time in 2020. From the chart, you can see there has been a steady increase in the number of active Litecoin addresses as the bull run continues, people are using,
buying, moving, and investing in Litecoin. Litecoin is indeed still getting a lot of interest especially from new investors since the number of new Litecoin addresses is also seeing an increase.
