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Trump-Linked Bitcoin Bond ETF Proposal Shakes the Market – How Quickly Can BTC Reach $1 Million?
Bitcoin
Cryptocurrency
Last updated:
December 27, 2024 08:49 EST
Crypto Writer
Arslan Butt
Crypto Writer
Arslan Butt
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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...
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December 27, 2024 08:49 EST
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Bitcoin Price AnalysisStrive, an asset manager founded by Vivek Ramaswamy, has filed for U.S. regulatory approval to list an exchange-traded fund (ETF) focusing on convertible bonds issued by corporate Bitcoin buyers like MicroStrategy.
According to Strive’s Dec. 26 filing, the ETF would provide exposure to “Bitcoin Bonds,” defined as convertible securities whose proceeds are used to purchase Bitcoin. This actively managed fund may also use financial derivatives like swaps and options to gain exposure.
While management fees for the fund remain undisclosed, actively managed ETFs typically charge higher fees than passive alternatives. If approved, the ETF could open new avenues for institutional investors to indirectly gain Bitcoin exposure, solidifying its mainstream appeal.
Source: BitcoinTreasuries.NET
The Rise of Bitcoin Bonds
MicroStrategy’s pioneering approach of financing Bitcoin acquisitions through convertible bonds and stock has yielded extraordinary returns. Since 2020, the company has spent around $27 billion accumulating Bitcoin. Its stock, MSTR, has surged over 2,200% since then, eclipsing nearly every major public company except Nvidia.
Corporate treasuries collectively hold approximately $56 billion worth of Bitcoin, according to BitcoinTreasuries.NET, with firms like Tesla and Square also adopting similar strategies. This trend underscores the growing institutional acceptance of Bitcoin as a reserve asset.
Trump Administration Sparks ETF Optimism
Strive’s connection to President-elect Donald Trump adds a political dimension to the ETF filing. Founded by Ramaswamy, a Trump ally, Strive aims to reshape investment practices to align with pro-capitalist values. Trump’s crypto-friendly stance, including proposed leadership changes at key regulatory bodies, has fueled optimism for pending ETF approvals.
The president-elect’s appointment of figures like former SEC commissioner Paul Atkins signals potential shifts in regulatory frameworks favoring crypto innovation. Industry analysts believe Trump’s leadership could expedite approval for Bitcoin and altcoin ETFs, marking a pivotal moment for the market.
Bitcoin Price Analysis
Bitcoin’s price currently stands at $96,420, recovering 1.12% in the last 24 hours, with a trading volume of $47.16 billion. However, a descending trendline at $98,300, reinforced by the 38.2% Fibonacci retracement level, limits upward momentum.
On the downside, Bitcoin faces immediate support at $94,734, with critical zones at $92,105 and $89,418.
The RSI at 47.78 reflects neutral sentiment, while the 50-day EMA at $97,460 aligns with the pivot point, highlighting its importance for short-term traders. A decisive break above $98,300 could set the stage for a retest of $100,252, but failure to breach resistance might intensify bearish pressure.
Can BTC Hit $1 Million?
The $1 million Bitcoin target has long been a speculative milestone for enthusiasts and investors. The launch of ETFs like Strive’s Bitcoin Bond ETF could accelerate adoption by offering institutional-grade exposure.
Analysts suggest that if Bitcoin adoption parallels gold as a store of value—currently at a $13 trillion market cap—Bitcoin’s price could exceed $600,000. Paired with diminishing supply and increasing corporate treasury use, the path to $1 million hinges on macroeconomic tailwinds and regulatory clarity.
Key Takeaways
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You might also like Bitcoin Price Prediction 2024 – 2034
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Follow us on Google News Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. Trending News Price PredictionsRecommended Articles
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