After years of readjusting its glasses and stroking its beard, the Securities and Exchange Commission coyly approved 11 Bitcoin ETFs last week. Investors worldwide had long waited for some sign of commitment—one way or the other—from the American regulatory agency, and speculators did not drag their feet once the announcement was official.
ETFs create an opening for investors who want to play with Bitcoin but not actually own it, and boy, did people want to play. While BTC itself swam in circles following the SEC decision, massive amounts of capital moved towards the exchange-traded funds. Current estimates show that trading volume for the 11 ETFs has already blown well past USD $11 billion. From conglomerates to grandmas, money is hopping furiously from one pocket to another.
It’s difficult to overstate the significance of the SEC’s kiss of peace. Many will interpret the blessing as a proxy adoption by the United States itself. As the capital flows in, investor confidence will grow commensurately, like a skyscraper in the desert. With all the mega-wads of institutional money in the game, it would be understandable if one were to presume that the crypto industry is now officially too big to fail.
To entertain that presumption, of course, would be foolish. Put aside the fact that existential threats—hostile, competitive, or internal—abound everywhere in the cryptosphere. Ignore for a moment that pesky universal truth that nothing lasts forever. Do remind yourself that at a micro level, we individuals are never too big to fail. We are all just one bad week away from goose eggs across the bank statement. So here it comes, our periodic reminder to our readers: play wisely. Whether you’re into the new ETFs, or the new hotcoin, or the new bacon-scented NFT, research diligently. Keep your guard up and don’t use the rent money. And when it’s time to move, slice like a hammer. Happy hunting.