This week, the U.S. Securities and Exchange Commission (SEC) made history by approving the first-ever Bitcoin exchange-traded funds (ETFs) to go live in the country, igniting a fresh bull run in the cryptocurrency market.
Given the strong presence of financial industry heavyweights such as BlackRock, Invesco, Fidelity, Grayscale, and Ark Invest in the cryptocurrency space, it makes sense to consider cryptocurrencies as a valuable addition to a portfolio that also includes stocks and bonds.
Demand was strong as evidenced by the record-breaking $4.6 billion in volume that ETF funds brought in on the first day, breaking the $1.63 billion mark set by Gold ETFs on opening day back in 2004.
These are five digital assets that cryptocurrency investors should consider
1.Bitcoin: Expect Increase Following ETF Approval Milestone
With the SEC’s approval, a large group of traditional investors who had previously encountered exposure barriers will now have access to Bitcoin.
Retirement planners can now include Bitcoin in employer-sponsored 401(k) plans as big institutional fund managers have included it to their investment funds. Mainstream investors can now obtain Bitcoin through reputable financial institutions and regulated fund structures, avoiding the difficulties of direct cryptocurrency ownership.
Apart from enhancing its reach, the revolutionary action additionally reinforced Bitcoin’s credibility in the perspective of individual and group investors. In conventional portfolios, Bitcoin can now safely coexist with traditional assets like stocks and bonds.
According to CEO of crypto liquidity provider Keyrock, Kevin de Patoul, “this ETF has two main impacts: increased distribution in the US (a moderate impact, as there have been ETFs outside of the US for years) and increased credibility of crypto as a ‘asset class’ (a very high impact). Bitcoin is no longer seen as shady or notorious, and there is now a bitcoin spot ETF in the United States. The general public’s perception is drastically altered by this.
Even though Bitcoin is currently the biggest cryptocurrency in the world, true believers believe that its potential is virtually endless. In a bullish scenario, according to CEO of ARK Invest Cathie Wood, the price of Bitcoin will reach $1.5 by 2030, a 50% increase from her previous prediction of $1 million.
“We think the probability of the bull case has increased with this SEC approval. This is a green light,” Wood said in an interview with CNBC.
2. Ethereum: Well-Situated to Boost Cryptocurrency Portfolio Returns
Ethereum has the potential to be a very valuable core holding in cryptocurrency portfolios. Ethereum, the second-biggest cryptocurrency after Bitcoin, gives investors an option to spread out their cryptocurrency holdings. Additionally, it exposes users to smart contracts and decentralized applications.
Ethereum reached its highest price point since May 2022 following the launch of the first Bitcoin ETFs. Investors are now hopeful that Ethereum ETFs will materialize in the near future.
The SEC is currently reviewing applications for Ethereum ETFs from major players in the financial industry, including BlackRock, Fidelity, Invesco, Ark Invest, and VanEck. Decisions on these filings are anticipated to start in May 2024. If these funds are approved, regular investors will be able to purchase Ethereum using their conventional brokerage accounts.
Next week, Ethereum’s major Dencun upgrade is expected to be released to the testnet. Dencon wants to use Proto-Danksharding to improve scalability and lessen network congestion. This could significantly reduce transaction costs and speed up Layer 2 solutions. Increased usefulness for decentralized apps and wider Ethereum adoption would result from this.
Ethereum is a great option for investors wishing to add cryptocurrencies to their portfolios because of impending network enhancements and potential ETF approvals. As adoption grows, Ethereum could stand out as a portfolio due to its combination of real-world use cases and price appreciation potential. For many investors, its inclusion in SEC-approved ETFs would also mean the removal of significant entry barriers.
3. XRP: Potential Gains Despite Uncertainty in ETFs
For Ethereum, SEC-approved ETFs seem very much a possibility, but for XRP, the regulatory landscape is murky. The legal dispute between Ripple Labs and the SEC has left XRP’s status unclear. This, according to Bloomberg analyst James Seyffart, makes a spot XRP ETF in 2024 extremely unlikely.
Nonetheless, there are still strong arguments for investors to think about including XRP in their portfolios. Even without access to ETFs, XRP is currently trading for $0.6023, a significant discount to its high of $2 in 2021. If the blockchain leader is able to reach a satisfactory settlement in its legal case, this offers a compelling value opportunity.
In addition, XRP has inherent benefits for cross-border payments, such as speed, dependability, and minimal costs. XRP would be well-positioned to benefit if Ripple is able to achieve its goal of increasing adoption.
Should XRP’s payments network achieve scale, some industry observers even predict a significant price increase. Ripple’s internal projections of $500+ per XRP in this scenario were referenced by Shannon Thorpe of Wells Fargo, albeit speculative.
XRP offers discounted access to a potential payments network for investors who are willing to hold cryptocurrency directly. Additionally, it adds diversity to portfolios when combined with Ethereum and Bitcoin. XRP may also emerge as a strong contender for SEC-approved ETFs if regulatory clarity increases.
4. Solana: Anticipated to Trajectories Similar to Ethereum
There has also been conjecture that a Solana ETF may follow suit in light of the introduction of Bitcoin ETFs. Following the launch of the Bitcoin ETF, the third-largest blockchain saw a price increase of over 14% as investors assumed that a SOL ETF would follow suit once the Ethereum ETF was approved.
Reiterating its belief in Solana’s long-term potential, investment manager VanEck said, “Solana will join the spot ETF wars thanks to a flurry of asset managers submitting filings.” Within two years, Solana is predicted by VanEck analysts to rank among the top three networks in terms of market capitalization, total value locked, and active users.
Apart from the possibility of accessing ETFs, Solana is a compelling addition to a cryptocurrency portfolio due to its exceptional speed, inexpensive fees, and quick uptake. Solana’s testnet reports indicate that the network executes 50,000 transactions per second at very low cost.
Furthermore, Solana is expanding its applications in decentralized apps, NFTs, DeFi, and other areas. There are now over 450 active projects that are the result of the rush of developers creating decentralized apps on the blockchain.
Exposure to an ecosystem experiencing remarkable growth is offered by Solana to cryptocurrency investors. It has a broad appeal due to its combination of scalability, speed, low fees, and staking bonuses. Moreover, the possible introduction of Solana ETFs with SEC approval would eliminate significant entry obstacles.
5. Bitcoin Minetrix: Increase Returns on Cryptocurrency Portfolios with “Dividends”
Bitcoin Minetrix provides a way to profit from Bitcoin’s growth through cloud mining, which can generate ongoing dividend-like income, while investors seek to take advantage of the new Bitcoin ETFs. The project’s native token, $BTCMTX, seeks to make Bitcoin mining more secure and accessible through its “Stake-to-Mine” method.
Bitcoin Minetrix will let users stake $BTCMTX tokens to earn non-tradable “mining credits” instead of requiring direct investments into cloud mining contracts. Then, these credits will supply mining power for Bitcoin, allowing for hands-off earning of the leading cryptocurrency.
Since its presale launch, Bitcoin Minetrix has raised over $8.2 million, indicating significant interest. The native token can be purchased for $0.0128 right now, and its price will rise to $0.0148 after 39 presale stages.
An exciting opportunity arises in the context of the growing acceptance of Bitcoin ETFs: the presale aims to raise at least $15 million to finance development, marketing, and mining infrastructure.
Bitcoin Minetrix is a scam-proof substitute for cloud mining since it tokenizes the process and moves away from direct contracts. Without paying high transaction costs, staking will also increase earning potential. A convenient way to gain exposure to BTC mining rewards for investors who are excited about the introduction of ETFs is through Bitcoin Minetrix.
The introduction of Bitcoin ETFs marks a significant turning point in the acceptance of cryptocurrencies by the general public. With investors focusing on Ethereum’s smart contract capabilities, the platform is prepared to divest from Bitcoin. And Solana is well-positioned to be approved by the SEC due to its combination of low fees and speed.
While XRP may face a longer path, its discounted price presents an intriguing value play. Bitcoin Minetrix’s crypto-staking cloud mining model provides a unique opportunity for investors looking to participate in crypto presales. With prudent portfolio allocation, these 5 cryptocurrencies may help boost returns as adoption grows.
