Everyone is talking about the imminent approval of a spot bitcoin exchange-traded fund (ETF).

Speculation has fueled a major rally in bitcoin. It is up 53% from its September low above $25,000.

As I write, we are approaching $42,000… And prices could go higher from there.

Despite the incredible bullish sentiment in cryptocurrencies right now, I have a warning for you.

If you heed my warning now, it could position you for life-changing gains from this new cryptocurrency bull cycle.

Failure to heed my warning could result in a lifetime of regret.

 

A Bitcoin Spot ETF Could Launch by the End of the Year

 

It is a small crypto asset manager with around $435 million in assets under management.

Franklin Templeton, on the other hand, is a major player on Wall Street. It manages more than $1.45 trillion in assets.

Franklin Templeton recently chose Coinbase to custody bitcoin in its proposed ETF. And it will use the Chicago Mercantile Exchange reference rate to set prices.

That means the company is serious about getting its bitcoin spot ETF approved by the SEC soon.

I don't have a crystal ball now, so I can't say whether the SEC will approve or reject those two applications before the January deadline.

It is also possible that the SEC will delay these decisions again, as it has done in the past.

We know that serious talks are underway between the SEC and two other major players looking to launch their respective ETFs soon.

I'm talking about Grayscale and BlackRock.

Grayscale manages the Grayscale Bitcoin Trust, or GBTC. It is a closed fund.

I won't go into all the differences between a closed-end fund and an ETF, but know this... Grayscale wants to convert GBTC into a spot bitcoin ETF.

By converting GBTC to an ETF, Grayscale will have more flexibility to manage the fund.

According to recent reports, Grayscale has agreed to allow Bank of New York Mellon to act as the trust's share transfer agent.

Grayscale also intends to list the closed-end fund's shares on the NYSE Arca exchange under the symbol GBTC, so we know the plan is afoot.

Meanwhile, representatives from BlackRock and Nasdaq met with SEC officials in late November to discuss BlackRock's proposed ETF.

BlackRock intends to list its iShares Bitcoin Trust on the Nasdaq.

This news suggests to me that we are close to the goal, we could see the approval of a bitcoin spot ETF at any time.

That's why I give this warning...

You must be prepared for a possible setback

Let's say that tomorrow the SEC approves one of the many bitcoin spot ETF applications... If that happens, there will be a very rapid increase in price.

What I want to prepare you for is the possibility of a short, sharp sell-off that could quickly follow the initial blowout and will confuse the hell out of the market.

This is why…

There is a lot of hot money flowing into bitcoin right now.

By “hot money” I mean that some investors want to take advantage of the post-ETF approval momentum… And then as soon as it happens, they will dump.

There may be enough long-term buyers like you and me who will absorb the fall... But I doubt it because the ETF approvals will be completely new.

It's going to take time to train brokers and get Wall Street's huge marketing machines going.

So if we see ETF approval relatively quickly, and it is followed by a rapid pump and crash, DO NOT sell your bitcoins on that crash.

Let me repeat: DO NOT SELL YOUR BITCOIN.

Any sell-off we see won't last long. In my opinion, it will be a massive sell-off to get rid of the last few weak hands and hot money.

Instead, I want you to take advantage of any pullback as an epic buying opportunity.

This is because there is a catalyst that is guaranteed to happen this year that I believe will be even bigger than the approval of a spot bitcoin ETF.

The next deadline for the Securities and Exchange Commission (SEC) to decide on a spot bitcoin ETF is January 1.

On that date, the SEC must approve or reject a Franklin Templeton spot bitcoin ETF application, and January 10 is the Hashdex ETF application deadline.

Hashdex is relatively new to the bitcoin ETF game.

 

There is a wave of capital coming into cryptocurrencies

Don't get me wrong... A spot bitcoin ETF will be a great catalyst for this asset class.

According to a recent Nasdaq survey, nearly 72% of financial advisors say they would be more likely to invest in cryptocurrencies if the SEC approves a spot ETF.

So I want to be very clear: a spot ETF will be a big win for cryptocurrencies… but it will mainly affect bitcoin.

Remember, bitcoin has a market cap of about $740 billion, that's considerable and I think it will go much, much higher from here.

But the catalyst I'm talking about could be an order of magnitude larger than that.

According to my research, it could trigger a $100 trillion opportunity that I call the Third Wave of Cryptocurrencies.

This is almost four times larger than the entire US economy. That would make this “Third Wave” the biggest crypto trend in history.

This is what I mean by that…

The first wave of massive gains came after Bitcoin established itself as an asset.

Nothing could kill it…not government regulations…not the traditional financial industry…not malicious actors like hackers.

The existence of Bitcoin paved the way for a new generation of altcoins. So it acted as a “railroad” to this asset class.

The Second Wave began during the depths of the Crypto Winter of 2018.

Despite all the price destruction, a completely new innovation came to the market: crypto income generation.

These crypto payments are similar to stock dividends. However, instead of the projects paying in dollars, these projects paid users in more underlying crypto.

But I think this Third Wave will be even bigger.

This is because this new trend will transform everything in the markets… stocks, bonds, ETFs, mutual funds, commodities… you name it.

This is the most exciting time I've seen in the cryptocurrency world since I started recommending bitcoin in 2017.

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By the way, if you know someone who wants to earn $10 withdrawable on Binance, plus $300 in cashback and a 20% discount on commissions for life when they create their account and make their first trade, share the CODE: ERIKA.

Thanks for reading

 

Erika Espinal