The Much Anticipated Bitcoin Explosion of 2017
Rally on! Hold for Reinforcements! Bitcoin-based Legacy Assets Are on the Way.
Image by as well as the public’s’ increasing awareness of bitcoins’ unique attributes of transparency and scarcity, is not far away.
We may start counting in orders of magnitude and $10k per bitcoin is not far-off. Can we help besides just holding? Yes!
How will Life Design the Bitcoin Explosion?
The Great Transition—the shift from pre-modern to postmodern Bitcoin culture—should be triggered by someone outside of the current ecosystem. That next “someone” will have a larger headcount than us, they are older, and they won’t use bitcoin wallets. These people value the piece of mind and the illusion of simplicity which includes a physiological fear of the new and lack of adrenalin needed to aggressively and proactively protect their personal capital
In 2017, Bitcoin is expected to become broadly recognized as a new asset class. Investors who are poorly educated on the subject or ignorant of bitcoin still treat it as something similar to cash or precious metals.
What the intrigued asset managers see in bitcoin first is an asset class that is not correlated to anything. This phenomenon is of a very high institutional demand
“Bitcoin certificates” that are listed on a stock exchange and traded in the same marketplace as shares. A casual investor can, therefore, use her or his regular bank or securities broker to trade the instrument. These certificates will be displayed in an ordinary account where one will be able to track the development of the investment and buy and sell freely during trading hours. In most cases, these certificates will take the form of ETP (Exchange Traded Products). Different markets will come up with variations of those: Exchange Traded Notes (ETNs), Warrants, Mini Futures, Exchange Traded Funds (ETF) and Actively Managed Funds (AMF).
The Only Two Bitcoin Exposure Tools at Present
We would like to discuss the respected Gemini Trust and SolidX Bitcoin Trust but have to wait until they become a real thing. Neither should we discuss hedge “funds” and listed investment advisors who act as retail asset managers buying bitcoin “for their clients” in a legally suspicious way. These kinds of dealings are numerous but hold very little value.
Amazingly, googling “bitcoin exposure” and doing a surface research give us only two options.
The Brave Two
We should start with the thing that works in exactly the manner we should expect to be broadly accepted soon. “XBT Provider” is already used by traditional asset managers, for example, by Acatis (~$3.5 billion under
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