El Salvador Records $13 Million Profit from Bitcoin Investment
El Salvador has seen a profit of $13 million from its investment in Bitcoin (BTC) as it awaits the approval of the Bitcoin ETF. President Nayib Bukele has hailed the financial increase, describing it as a positive return on investment after two years of negative trends. The country began purchasing Bitcoin in September 2021, acquiring 700 BTC at prices ranging from $47,250 to $52,670 over two weeks. El Salvador now holds a total of 2,798 BTC valued at $131.3 million. The value of Bitcoin has risen by over 75% since October, driven by anticipation of the upcoming approval of a Bitcoin spot ETF by the US Securities and Exchange Commission (SEC).
Premiums Expected for Bitcoin ETFs, says Reggie Browne
Reggie Browne, Co-Global Head of ETF Trading and Sales at GTS, predicts that Bitcoin spot exchange-traded funds (ETFs) could trade at a premium of up to 8% above their net asset value (NAV). Browne attributes this premium to US broker-dealers’ inability to internally exchange Bitcoin cash and their reliance on futures for coverage. He acknowledges the challenges within the regulatory framework imposed by the SEC but remains optimistic about the approval of spot Bitcoin ETFs and expects significant investor interest. Browne forecasts inflows of at least $2 billion in the first month of trading if approved, with potential funds amounting to $10-20 billion throughout the year.
Bitcoin Price Holds Steady as Approval of ETF Remains Uncertain
Bitcoin’s price has remained above $46,500, briefly peaking at $47,000 amid increased interest in ETFs. The cryptocurrency has seen a 5% increase in the last 24 hours. While many analysts believe that the SEC may approve a spot Bitcoin ETF, there are divergent opinions. Youwei Yang, Chief Economist of BIT Mining, expresses skepticism and predicts a delay of at least three more months. Yang cites issues such as the lack of clarity on manipulative behaviors in the crypto market and concerns about criminal or terrorist activities. However, some analysts argue that news of the ETF approval has already been widely anticipated.
BlackRock and VanEck Submit Updated Documents for Bitcoin ETFs
BlackRock and VanEck, two of the thirteen companies seeking to launch Bitcoin ETFs in the US, have submitted updated documents to the SEC. These documents indicate that both companies have received comments from the SEC within the last 24 hours. The submissions come as the cryptocurrency market eagerly awaits the approval of Bitcoin ETFs, which could have significant implications for investment in Bitcoin.
Hot Take: El Salvador Sees Profits Soar as It Awaits Bitcoin ETF Approval
El Salvador’s investment in Bitcoin has paid off handsomely, with a profit of $13 million recorded amid growing revenues. President Nayib Bukele has celebrated this positive return on investment after two years of negative trends. Meanwhile, anticipation builds for the approval of a Bitcoin spot ETF by the SEC. Reggie Browne of GTS predicts premiums of up to 8% for these ETFs and expects significant investor interest if approved. However, there are differing opinions on whether the SEC will grant approval, with skepticism expressed by Youwei Yang. BlackRock and VanEck have submitted updated documents to the SEC as they wait for a decision.
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