Benzinga - by Chris Katje, Benzinga Staff Writer.
Investors continue to be optimistic that Bitcoin ETFs will be approved.
Signs point to a matter of when and not if. The optimism even helped propel the price of Bitcoin (CRYPTO: BTC) over a key $31,000 level on Monday.
Here’s a look at how much an investment in the leading cryptocurrency would be worth today, based on a key date in history.
What Happened: Investors are stoked for potential Bitcoin ETFs after a federal court ruled against the U.S. Securities and Exchange Commission (SEC) and directed the regulatory agency to review the application from Grayscale Investments to convert its Grayscale Bitcoin Trust (OTC: GBTC) into an ETF.
The decision from the court could expedite the approval of several Bitcoin ETFs that have been filed and await approval. Bitcoin ETFs have been filed by the likes of BlackRock (NYSE: BLK), WisdomTree (NYSE: WT), Invesco, Valkyrie Investments, Ark Invest, VanEck and Fidelity.
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Several of the ETFs have made amendments to their filings. This has led some ETF experts to believe the SEC is working on approval instead of outright rejection.
Before the recent Bitcoin ETFs were filed, or the Grayscale Bitcoin Trust was launched in September 2013, there was an S-1 filed for a Bitcoin ETF with the SEC.
On July 1, 2013, Gemini founders Cameron and Tyler Winklevoss filed the Winklevoss Bitcoin Trust as a planned Bitcoin ETF. The Winklevoss twins saw their initial filing and a second attempt rejected in 2018.
Cameron Winklevoss commented on the status of Bitcoin ETFs on the 10-year anniversary of the filing, which happened several months ago, saying: "The SEC’s refusal to approve these products for a decade has been a complete and utter disaster for US investors and demonstrates how the SEC is a failed regulator."
Winklevoss accused the SEC of helping to push investors into FTX, which eventually went bankrupt and was “one of the largest financial frauds in modern history.”
The Gemini co-founder wished luck to all the companies fighting to bring Bitcoin ETFs to market.
Here’s a look back at investing in Bitcoin when the Winklevoss brothers filed for the first ETF launch.
Related Link: Exclusive - Why Does Cathie Wood Think Bitcoin Is Going To $1 Million?
Investing $1,000 in BTC: Bitcoin hit all-time highs of nearly $69,000 in November 2021 and has traded above $10,000 for many years. It may be surprising to some that Bitcoin traded below $100 in parts of 2012 and that year marked the first time the leading cryptocurrency hit the $1,000 level.
On July 1, 2013, Bitcoin traded for around $90.80. A $1,000 investment in Bitcoin could have purchased 11.0132 BTC at the time.
Based on a price of $34,055.98 at the time of writing, the $1,000 investment would be worth $375,065.32 today. This represents a hypothetical return of 37,406.5% over the last 10 years.
Over the past decade, Bitcoin has delivered stronger returns than leading stocks and has outpaced the overall stock market.
For Comparison
- A $1,000 investment in the SPDR S&P 500 ETF Trust (NYSE: SPY), which tracks the S&P 500, would be worth $2,618.69 today. This represents a gain of 161.9% over the last 10 years.
- A $1,000 investment in Tesla Inc (NASDAQ: TSLA) over the same time period would be worth $29,914.03 today. This represents a hypothetical return of 2,891.4% over the last 10 years.
- A $1,000 investment in Apple Inc (NASDAQ: AAPL) over the same time period would be worth $11,96.97 today. This represents a hypothetical return of 1,096.3% over the last 10 years.
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