El Salvador’s Bitcoin Investment Generates $12.6 Million in Unrealized Gains
El Salvador’s Bitcoin (BTC) portfolio of 2,798 tokens has earned an unrealized profit of $12.6 million, and there are no plans to sell. According to data from Nayibtracker, El Salvador holds a total of 2,798 bitcoin ($131.3 million). The latest BTC investment by the Central American country shows an impressive all-time upward price trajectory of 10.21%. This follows President Nayib Bukele’s announcement in December 2023 revealing a profit of $3.6 million.
Long-Term Strategy Amidst Price Fluctuations
Despite short-term price fluctuations, President Bukele emphasizes a commitment to a long-term strategy for El Salvador’s Bitcoin investment. The country sees its BTC holdings as part of a broader and enduring approach rather than reacting to immediate market conditions. However, the potential approval of a spot Bitcoin ETF could lead to significant inflows and propel BTC prices to new highs. BTC has already seen a substantial increase of 75% since October 2023, driven by optimism surrounding the approval of a spot Bitcoin ETF in the United States.
Potential Approval of Bitcoin ETF
The Securities and Exchange Commission (SEC) is set to make a decision on the approval of a spot Bitcoin ETF on January 10, 2024. Various asset managers have submitted amendments to lower their fees in response to regulatory meetings with SEC officials. At present, Bitwise, Valkyrie, Invesco, and WisdomTree have lowered their trading fees to 0.20%, 0.49%, 0.39%, and 0.30% respectively.
The Rise of El Salvador’s Bitcoin Investment
In September 2021, President Bukele announced that El Salvador had acquired 200 BTC, bringing the total to 2,798 coins. This announcement came a day before the approval of El Salvador’s Bitcoin Law, establishing cryptocurrency as legal tender in the country. The most recent acquisition took place in November 2022, with an average cost of $42,440 per coin. El Salvador has been making notable advancements in Bitcoin adoption and recently achieved a milestone with the regulatory approval of Volcano Bonds on December 12, 2023.
Hot Take: El Salvador’s Bitcoin Investment Continues to Thrive
El Salvador’s Bitcoin investment has proven to be lucrative, with unrealized gains of $12.6 million. Despite short-term price fluctuations, the country remains committed to its long-term strategy and views Bitcoin as an enduring part of its financial approach. The potential approval of a spot Bitcoin ETF could further boost BTC prices and bring significant inflows. With the SEC set to make a decision on the matter soon, all eyes are on the future of Bitcoin in El Salvador.
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