{"id":3059140,"date":"2024-01-12T10:57:44","date_gmt":"2024-01-12T15:57:44","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/gold-etfs-vs-bitcoin-etfs\/"},"modified":"2024-01-12T10:57:44","modified_gmt":"2024-01-12T15:57:44","slug":"gold-etfs-vs-bitcoin-etfs","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/gold-etfs-vs-bitcoin-etfs\/","title":{"rendered":"Gold ETFs vs. Bitcoin ETFs"},"content":{"rendered":"
<\/p>\n
This week\u2019s approval of bitcoin ETFs is a milestone moment.<\/p>\n
I\u2019ve got to say, it felt pretty good. After years of proclaiming the virtues of investing a small amount of bitcoin into your portfolio, it\u2019s satisfying to know that every financial advisor will soon be recommending this strategy to their clients.<\/p>\n
In the words of a famous union leader<\/a>: I explained bitcoin ETFs in my Parable of the Bitcorn<\/a>, but to predict what might happen from here, let\u2019s look at the growth of a similar product: gold ETFs<\/em>.<\/p>\n <\/p>\n Investors have always loved gold. (Also, pirates.) Gold holds its value, because, you know, they\u2019re not making any more of it.<\/p>\n But holding your own gold is a hassle. You\u2019ve got to find a reputable place to buy it, and a safe place to store it. You\u2019ve got to manually calculate its value. And like a Kardashian, you have to question its purity.<\/p>\n The idea of a gold ETF was a breakthrough: rather than hiding coins under their bed, investors could just buy shares of a fund, just like buying shares of a company. The fund would hold the gold, so you wouldn\u2019t have to.<\/p>\n The first true gold ETF launched in Australia in 2003, but the big one was SPDR Gold Shares<\/a>, which launched in the US in 2004. Demand was unprecedented, with 50 million shares trading on its first day. It crashed major trading platforms, who couldn\u2019t keep up with the volume.<\/p>\n The price of gold saw a short-term bump, but it\u2019s the long-term results that we\u2019re interested in:<\/p>\n
First, they ignore you, <\/em>
then they laugh at you, <\/em>
then they attack you, <\/em>
then they build monuments to you.<\/em><\/p>\nGold ETFs: They Hold the Gold, So You Don\u2019t Have To<\/h2>\n