The Flippening That Could Be Upcoming

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We are likely to see something happen that will be a big moment in the world of cryptocurrency.

Right now, SPDR is the largest gold ETF (GLD). At the same time, GBTC is the largest Bitcoin trust. Between the two, we see the head to head competition for the "store of value" asset.

In this video I discuss how it will be a bit deal if GBTC does surpass GLD in assets under management (AUM). It will further solidify the idea that institutions are piling into Bitcoin however they can.


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Man crypto dump made me scared a lot it was like I sleep at night peacefully and I had a huge boom when I wake up

Crypto has huge swings. It is nothing new.

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Yeah it's nothing new but think about it you have invested thousand of dollars and suddenly crashes to me it was like my heart was going to jump out of my chest

I had days where I lost $25K due to the swings in crypto.

That is just the nature of the beast.

Either accept it or one has to leave. Because otherwise, one will have a heart attack.

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I agree with you I have get used to it and there is no point in feelings sorrowful but you gotta learn and act fast on your future trades I guess

I think gold, silver and crypto all have their own places. I for one invest only in physical metals as I have been burned many times by etfs.

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It becomes more and more secure so more and more players are getting in.

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Very true. A lot of players starting to get in and big ones too.

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The flippening is bound to happen at some point and we will sit there and wonder how will we ever use bitcoin again with those huge transaction fees :)

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The transaction fees arent huge if you are moving $1 million in Bitcoin.

Keep in mind that many of the institutions are buying in the range of hundreds of millions.

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maybe I just want to move a few thousand, that was the idea

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I bet wall street already believes in bitcoin more than it believes in gold, but they're not vocal about that. These guys don't show their intentions. They're not like the majority of the crypto space participants. I wonder though, as a retailer why invest in GBTC and not real Bitcoin?

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Agreed. They arent going to advertise it but they will with their actions.

If they are buying, it will show up on their balance sheets.

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I think it will happen. The development and advancement of technology benefits crypto while gold/silver is more for stability. In fact anyone who looks at the chart from a long term perspective can see that BTC is way outperforming gold/silver.

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I believe you are correct. Things are not going to slow down for Bitcoin I dont believe.

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I think it is inevitable that this will happen. More and more are investing in Bitcoin as a store of value knowing it can only go up. I still see Gold going up in price though as it is becoming more expensive to mine as they are having to go deeper and deeper to find it.

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As a gold and silver bug, this does have me slightly concerned about how both markets will look long term. I know one has a much longer track record, but honestly the storage of physical gold & silver has pains as keeping crypto safe guarded and in a way that can be handed down if I kick the can.

I think all this FUD lately is just to shake out as much weak hands and leveraged positions to accumulate more. Eventually - this will get priced so high, most will feel they afford a slice and will cling to Alts.

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I know people are down on gold but I still think it has its place. Gold has withstood countless wars over the centuries. Bitcoin is great but it still hasn't been "battle tested" yet.

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There will be still some who will prefer to hold physical gold and silver, just like there are some who still use paper money instead of electronic transactions without being criminals. But the balance will most likely side towards bitcoin, just like most transactions are now mostly electronic and not using paper money.

Compared to gold, bitcoin is easier and much quicker to transport, doesn't need storage, it's easier and much cheaper to secure.

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Summary:
In this video, the speaker discusses an impending "flippening" between Grayscale's Bitcoin Trust (GBTC) and the SPDR Gold Fund (GLD). The comparison is significant as GBTC is the largest Bitcoin asset trust, while GLD is the largest gold ETF. There has been a substantial shift in funds, with GBTC crossing the $40 billion threshold while GLD has experienced an outflow of around $23 billion. The speaker highlights the importance of institutions investing in GBTC as a store of value, indicating a shift towards Bitcoin over gold. The potential flip would signify Wall Street's preference for Bitcoin, showcasing confidence in the cryptocurrency as a store of value.

Detailed Article:
The video delves into the concept of a flippening, not in the context of Ethereum surpassing Bitcoin, but rather in the comparison between Grayscale's GBTC and the SPDR Gold Fund (GLD). Grayscale, known for its Bitcoin Trust, has seen significant growth, reaching over $40 billion in assets under management. On the other hand, GLD, the leading gold ETF, has experienced a substantial decrease in funds, now standing at around $57 billion, indicating an outflow of approximately $23 billion.

The speaker points out that these funds, held predominantly by institutions, offer exposure to asset classes without the need to hold the assets physically. While Grayscale's GBTC is a trust and not an ETF due to lack of SEC approval, it has become a legal and viable option for institutions seeking Bitcoin exposure.

The comparison between GBTC and GLD is crucial as it reflects where institutions are choosing to allocate their funds as a store of value. Historically, gold has been a popular choice for investors seeking a safe haven asset. However, the recent shift towards GBTC suggests a growing confidence in Bitcoin as an alternative asset for preserving value.

The speaker emphasizes that the preference for GBTC over GLD indicates a changing sentiment among money managers, with Bitcoin being viewed as a more attractive investment option compared to gold. This shift is attributed to the potential higher returns offered by Bitcoin, even though it comes with its own set of risks and uncertainties.

Furthermore, the discussion touches on the evolving perception of Bitcoin and gold primarily as stores of value rather than mediums of exchange. The increasing adoption of Bitcoin as a store of value and a collateralizable asset is highlighted, promoting its attractiveness to institutional investors.

In conclusion, the potential flippening where GBTC surpasses GLD in terms of assets under management would symbolize a significant milestone in institutional acceptance of Bitcoin. The ongoing trend towards Bitcoin as a preferred store of value over traditional assets like gold showcases a changing landscape in the world of investment choices. Observing the flow of funds and preferences of institutions over the coming months will provide further insights into the evolving dynamics between Bitcoin and traditional stores of value.