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Navigating a Post Bitcoin ETF world


Press Release 21st Jan 2024 - Weekend Mauritius Newspaper


The decision by the United States Securities and Exchange Commission (SEC) to approve the launch of Bitcoin ETFs is a landmark achievement in the history of modern investing.


Born in 2008 at the height of the great financial crisis, Bitcoin has come a long way to finally find its place at the high table of Wall Street. To clear all doubts regarding financial regulations, Bitcoin is officially recognized by the SEC as a commodity under the guidance of the CFTC and any investor can invest in it and treat it the same way one would invest in gold, silver or any other precious metal, hence the nickname “Digital Gold”.


How big is the Bitcoin ETF?


As of January 18, 2024, Bitcoin ETFs had already accumulated more than $30 billion in Asset Under Management (AUM), which constitutes an important benchmark in the financial world. For comparison: gold ETFs have $95 billion in AUM, while silver only has $11 billion in AUM. This places Bitcoin as the second largest store of value in the precious commodities segment, just behind gold.


What is the impact of this approval for the average investor?


Based on the positioning of the Bitcoin ETF in the commodities sector, and its size relative to the other commodities makes it very difficult for any investor to ignore it. Big passive allocators such as Pension funds or mutual funds will likely to make a mandatory allocation to Bitcoin in the same way they currently make their allocations to gold or any other precious metal or commodity.

As an active or passive investor, you will most likely have an interest in Bitcoin sooner or later.

That being said, we strongly recommend caution when personally investing in digital assets outside of Bitcoin especially stocks that are related to digital assets, as each of these assets have its own distinct fundamentals that may have either a lower correlation to Bitcoin or even a strong negative correlation to Bitcoin.


Who is Stewards Investment Capital?


Stewards Investment Capital holds an Investment Advisor (unrestricted) license from the FSC under license number C116016616. The company specializes in advising high net worth individuals and institutional investors on alternative investments.

Stewards Investment Capital is part of the Stewards group of companies which have been operating for over 20 years in Mauritius, South Africa and the United States.




Disclaimer:

This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the investments or assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts, and other forward-looking statements, which do not reflect actual results. Information provided by third-party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Any opinions, projections, forecasts, and forward-looking statements presented herein are valid as of the date of this communication and are subject to change without notice. The information herein represents the opinion of the author(s), but not necessarily those of Stewards Investment Capital Ltd.

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