Episode Details

The Securities and Exchange Commission, SEC, approved 11 Bitcoin ETFs this week. Now, I expect that many in our audience have heard of the digital asset Bitcoin, even if they are not sure what it is or why it’s valuable. Over the last three years, bitcoin’s price has ranged from a high of around $67,000 before plunging to $16,000 and is now up to over $43,000—volatility in spades.

The approval marks the first time a major regulatory body in the United States has approved this type of bitcoin investment vehicle. Starting January 11th, investors can use their brokerage accounts and certain retirement accounts to buy and sell these funds.

Just because bitcoin ETFs are regulated and approved by the SEC does not make them without risk. The SEC clearly stated that the approval is not an endorsement. The approval does, however, increase the legitimacy and acceptance of Bitcoin in mainstream financial markets. It offers investors a new way to gain exposure to the bitcoin price without directly purchasing and holding the asset, potentially mitigating some risks associated with its storage and safekeeping.

You may be thinking: Should I own bitcoin in my investment portfolio? It’s a fair question. We believe it ultimately comes down to individual risk tolerances, investment goals, and time horizons.

At Vector, we have the experience and tools like Sojourn to help bring clarity to your financial life. Our goal has always been to help you make informed decisions, whether it be considerations around stocks, real estate, a business, or bitcoin.

www.vectorwealth.com/posts/bitcoin-etf-market-perspective

www.vectorwealth.com/regulatory

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