What is your perspective about bitcoin with it's possiblity to become the US federal reserve under Trump admisnistration? How much likely it will become US federal reserve?
How many % of Bitcoin to allocate in a portfolio you suggest?
How to invest in Bitcoin in Canada? Are there any ETF's that I can purchase? Any risks with them?
Trump is being defined as a 'pro-crypto' US President, and the new administration has so far appointed an SEC crypto task force aimed to provide thoughtful regulation, there is a crypto czar, and Trump's sons have a DeFi platform called 'Liberty Financial' which is heavily involved in buying crypto assets.
The US crypto task force has been tasked with 'studying' the potential for a bitcoin strategic reserve. This reserve could take many forms; not selling any bitcoin the US government currently holds (seized from an exchange hack years ago), or it could be strategic purchases for the US' balance sheet. The US is also planning on setting up a sovereign wealth fund, and this would be partially managed by Howard Lutnick (CEO of Cantor Fitzgerald) who has a sizeable interest in crypto. There is lots of speculation, but as the possibility of these things grow, other nations may begin buying bitcoin. Last week we saw the sovereign wealth fund of Abu Dhabi disclose it owns just under $500M in bitcoin through the IBIT ETF.
While there is potential, we also note it has run up significantly, and while we believe there is still upside potential, it has significant volatility, and historically it has large drawdowns. While we cannot personalize on position sizing, we prefer to keep positions small due to the high volaitlity.
In Canada, we like FBTC and IBIT (Canadian version).