May. 10, 2022
Dear SEC team, I greet you cordially. I am Daniel, a stock market trader graduated from the Viña del Mar University of Chile, the first generation of Latin American cryptocurrency traders. I come to leave my perspective about the impact that a Physical ETF can have. A Bitcoin Physical ETF of such magnitude (Grayscale) will allow to the asset what is known as price stabilization, in this case, for Bitcoin. Only futures ETFs have been approved and that ETFs only add volatility to the market, which has been downward mainly due to the macroeconomic situation. Many physical Bitcoin holders sell based on what call/put options and futures contract movements show. Bitcoin is following a pattern similar to the Gold in 1980 (Picture 1), a similar Wyckoff-type distribution with the difference that Gold began to rise in a parabolic curve, then the price goes down, and then the Gold was stabilized in a range between 1.050-2.000usd the oz in 2011-2022 date. Bitcoin did a similar wyckoff distribution (Picture 2). Something interesting is that Bitcoin is capable of respecting theoretical patterns of wyckoff, elliot waves, chart patterns, which makes it an asset with the possibility that institutions can trade safely. In my opinion the approval of the Physical ETF would allow the price to rise in short term, and stabilize it to a point where it ends up trading within a similar range as the gold (For example, a Range between 60.000usd - 100.000usd per Bitcoin in the years, like the range of the gold between 2011-2022 years); considering that Bitcoin's mining is much more ecological than gold mining because it can be done with renewable energies, solar panels and asic miners connected to them. Regards!