Opinion: The Case for Investing in a Bitcoin ETF and Why It’s Time to Get Off Zero
Today, my father asked his broker to allocate some of my parents’ funds into the BlackRock iShares Bitcoin ETF.
No surprise here, the gentleman advised against it, but did tell my father that it’s his money and he will do as he wishes.
He then sent over an article he wrote in January just a few days after the SEC’s ETF approval, essentially telling his clients that the Bitcoin ETFs exist, however, they do not recommend buying it.
Fair enough, nobody wants to be the financial advisor who told you to buy Bitcoin and then have to explain if the price goes down, after all, their jobs rely on returns and trust.
I do not blame this man at all for that response. It did dawn on me, however, that given all we know now about Bitcoin today, this guy didn’t seem to consider the upside.
How do you explain to your clients that you didn’t think it was a good idea to allocate when Bitcoin ends up doubling in price? 100% is a juicy ROI, in fact, year to date we’re at 150%.
Now, I am aware that Bitcoin is trading 30% lower than it was at all-time highs in Nov of 2021, but if you’re a long-term investor armed with knowledge, you know that bitcoin has done this every 4 years like clockwork. Big parabolic runs up, big drawdowns. If you’re looking at the big picture, the writing is on the wall.
There is no doubt that most financial advisors are unaware of the real underlying technology behind Bitcoin.
They tend to say “speculative” a little more often than I’d like, but again, I don’t blame them; blockchain technology is beyond complex.
Are they aware of SHA256 hashing algorithms, do they know that new blocks are mined every 10 minutes and only 900 Bitcoins come into existence every day, do they know that number gets cut in half in 70 days, to a mere
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