A Bitcoin Strategy For DCA
Here’s a simple idea for people who use dollar-cost averaging into Bitcoin.
When Bitcoin is trading far below its previous ATH, it may make more sense to buy BTC directly rather than buying spot ETFs.
Why?
Because at those levels you mainly want pure exposure to the asset.
Buying BTC directly gives you the cleanest exposure without relying on ETF flows.
But the strategy might change when Bitcoin approaches new all-time highs.
At that stage, buying spot Bitcoin ETFs could potentially create a double demand effect:
Investors buy the ETF shares.
Authorized participants may need to buy real BTC to create new ETF shares.
So ETF demand can indirectly trigger additional spot 2X buying pressure
In theory this creates a feedback loop:
ETF buying > price move up > BTC purchases by market makers > price move up
Not financial advice, just an interesting market structure thought.
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from Bitcoin - The Currency of the Internet https://ift.tt/PmGeA9Y
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