Bitcoin has gone up 90% in 2020 and our clients are taking notice. Despite the IRS making efforts to treat bitcoin like a security for capital gains’ purposes, and the SEC not yet providing an Exchange-Traded Fund option to invest, fears of inflation and the pandemic have triggered widespread acceptance of digital currency to the point where trading firms and brokerages are joining in.
There are going to be a lot of legal changes in this area, and it’s about to get fun!
Although the Securities and Exchange Commission has yet to approve a bitcoin ETF, other services are in place. And investors are beginning to embrace them. “You had all these rails for institutional capital to come in,” said Matthew Hougan, chief investment officer at BitWise Asset Management. “Then you had the sharp catalyst: the response to the pandemic and concerns about inflation.”