Bitcoin ETF debuts in North America as Elon Musk says BTC is "simply a less dumb form of liquidity than cash"

Bitcoin ETF starts trading in North America, attracting over $165 million in volume.
Elon Musk says that he never directly influenced Tesla's decision to buy $1.5 billion worth of BTC.
Bitcoin holds above $51,000 as analysts remain strongly bullish for higher highs.
BTC may abandon the uptrend if support at $50,000, and the 50 SMA is lost.

The first North America Bitcoin exchange-traded fund (ETF) went live on Thursday, attracting more than $165 million in traded shares. The debut comes after a massive surge in the value of BTC since last year. Meanwhile, the founder of the world's largest electric vehicle manufacturer, Elon Musk, believes that Bitcoin offers the best liquidity alternative to fiat.

North America on the map with the first Bitcoin ETF product

The new product debuted for the first time in Toronto on Thursday with the ticker BTCC. Purpose Investments Inc., the product's issuer, allows investors to buy into "physical/digital Bitcoin directly." The number of funds this Bitcoin ETF will attract into the industry is still unknown, but the massive volume on its first day of trading suggested that investors had been eager. According to CFRA Research's director of ETF research, Todd Rosenbluth:

There's sizable untapped interest for a Bitcoin investment that has the benefits of an ETF.

While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.

Tesla's action is not reflective of my opinion – Elon Musk

Elon Musk seems to have distanced himself from Tesla's decision to include Bitcoin on its balance sheet. The billionaire founder took to Twitter saying that:

I am not an investor; I am an engineer; I don't even own any publicly traded stock besides Tesla.

However, Musk went ahead to say that only fools were expected not to realize "when a fiat currency has negative real interest."

Consequently, the founder of SpaceX, a leading private space exploration company, also reckoned that Bitcoin is "simply a less dumb form of liquidity than cash" and that it is an asset that can attract any S&P500 company.

Bitcoin could be better than gold

Over the last few months, Bitcoin's rally has attracted key global figures, including Elon Musk, the world's second-richest person. Moreover, Jeffrey Gundlach, a long-term investor in gold, seems to be leaning the Bitcoin way saying that the pioneer cryptocurrency could be better than the precious metal.

I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn’t look like gold is.
— Jeffrey Gundlach (@TruthGundlach) February 18, 2021

Bitcoin could test $50,000, but its outlook is bullish

Bitcoin is trading at $51,300 after correcting from the recently achieved new all-time high of $52,500. The rally to higher levels has cooled off, perhaps to let fundamentals catch up. Meanwhile, BTC is likely to retest the crucial level at$50,000 based on the Moving Average Convergence Divergence (MACD) trend.

As the MACD line crossed under the signal line, Bitcoin bears gained more strength hence the breakdown from the new record highs. However, most analysts remain bullish like the 'Altcoin Sherpa,' who told his fans on Twitter, "I think that this could be retesting 50k, but let's see. I'm still bullish on Bitcoin overall; it should go higher IMO."

BTC/USD 4-hour chart

Looking at the other side of the fence

Bitcoin may fall sharply if the support at $50,000 is lost. Besides, the ascending channel's lower boundary and the 50 Simple Moving Average must remain intact to ensure that the uptrend stays intact. However, it is essential to keep in mind levels at $46,000 and $44,000 because they recently function as support areas.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.