As of late March 1, bitcoin prices were higher by 16% over the past week, indicating that the largest cryptocurrency is rebounding from recent declines while potentially providing an alternative to other risk assets that are proving vulnerable to the Russia-Ukraine conflict.
Should that trend continue, exchange traded funds such as the Valkyrie Bitcoin Strategy ETF (BTF) could benefit. The actively managed, futures-based BTF could be in for some upside this month if one expert’s predictions prove accurate.
“As it currently stands, I can see no reason why this price momentum should falter. I think we can expect to see Bitcoin hit $50,000 by the end of this month,” says deVere Group CEO Nigel Green. “It’s still too early to say whether it will then go on to reach the all-time highs of $68,000 from November 2021.”
BTF, which debuted last October, holds front-month bitcoin futures contracts traded on CME, so its current futures exposure to the digital asset is comprised of the March futures. By holding the nearest month’s contracts, BTF should be reasonably sensitive to bitcoin’s price action.
Looked at differently, if Green’s prediction of bitcoin ascending to $50,000 by the end of this month is accurate, that could be a boon for BTF because bitcoin traded around $44,300 as of late Tuesday. The aforementioned Russia-Ukraine conflict, if it lingers, could be a catalyst to propel bitcoin higher.
“The Ukraine-Russia situation has caused significant financial upheaval and individuals, businesses and indeed government agencies – not just in the region but globally – are looking for alternatives to traditional systems,” notes Green. “As banks close, ATMs run out of money, threats of personal savings being taken to pay for war, and the major international payments system SWIFT is weaponized, amongst other factors, the case for a viable, decentralized, borderless, tamper-proof, unconfiscatable monetary system has been laid bare.”
Today, bitcoin is the world’s 14th most valuable currency, and it could further climb the ranks as more institutional investors enter the market.
“As more and more institutional investors take control of the sector, credibility increases, trading volumes go up and volatility goes down – this is all good news for everyday investors,” concludes Green. “As more and more institutional investors take control of the sector, credibility increases, trading volumes go up and volatility goes down – this is all good news for everyday investors.”
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