Is It Time to Invest in Bitcoin?
The SEC’s recent approval of spot bitcoin ETFs is a game changer, making bitcoin investment convenient, cheap (about .25%/year), and secure in the custodial sense. It is still enormously volatile, however. It could still fizzle out, but increased institutional acceptance seems to indicate permanence is more likely. In the long run, it could become a reserve asset for central banks and a popular store of value for investors. Bitcoin’s market capitalization has grown to over 1% of the entire U.S. capital market. I recommend a 1% strategic allocation within a range of 0% to 2%.