Tile Wisdom: Buy the rumor, sell the news. Cathie Wood says the path to launching a Bitcoin ETF can be classified as ‘buying the noise’, but once this new financial product hits the market, investors will sell their Bitcoins in short order.
The price rises in the run-up to an event, but falls immediately afterwards.
Investors sell Bitcoin
Wood hopes some investors will take advantage of the opportunity to cash in on the profits. She calls this a “major forward-looking step” based on anticipating a possible Bitcoin ETF approval.
Cathie Wood is CEO of ARK Investments, a party that also has a Bitcoin ETF application with the American Financial Conduct Authority. She was worried about it interviewed from Yahoo Finance:
“Those who bought and made good profits are likely to ‘sell on the news.’ That’s a term traders use, so you anticipate the event, raise the price and then sell based on the news.”
The long term is important
A second block: when in doubt, zoom out. While the short-term impact may cause some investors to sell Bitcoin, the long-term prospects are promising and more important, Wood said.
“This would be very short-term, as we believe the SEC will give the Bitcoin spot ETF the green light for institutional investors to participate.”
Once approved, a spot Bitcoin ETF will be one of the easiest ways for financial institutions to access BTC and allow them to invest large amounts of money in Bitcoin, ARK CEO believes. According to Wood, the price of Bitcoin would change significantly if institutional investors invested at least 0.1% or 0.2% of their assets in Bitcoin.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
