Bitcoin & The Banks: A Spot of Bother?

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Now, Bitcoin (BTC +0.73%), a most curious invention, has been experiencing a bit of a wobble, hasn’t it? Down nearly twenty percent over the last twelve months, one might think the game is up. But hold your horses! The big financial fellows – the sort who know a thing or two about where the wind blows – are, as a matter of fact, piling in. It’s all frightfully interesting, you see.

Goldman Sachs (GS +0.95%), a name that positively rings with authority, reportedly had a cool $1.6 billion tied up in Bitcoin exchange-traded funds (ETFs) at the close of last year. JPMorgan (JPM +0.86), not to be outdone, had dipped its toe in with about $343 million as of November. Even the more cautious chaps at Bank of America (BAC +1.50) and Wells Fargo (WFC +2.12) have been seen making modest investments. Rather suggests they suspect something rather jolly might be brewing, wouldn’t you agree?

Should One Follow Suit?

Back in 2024, you see, everything was coming up roses for Bitcoin. The four-year halving, the approval of those spot price ETFs, and a general decline in interest rates all conspired to send the price soaring. But alas, those favourable winds have rather dissipated, and Treasury yields remain stubbornly high. Consequently, some of the more excitable bulls have decided to take their profits and retire to the beach, which is perfectly understandable, really.

Valuing Bitcoin is still a bit like trying to nail jelly to a wall, naturally. But it is actively mined, its supply is limited – a most reassuring thought – and it could, conceivably, become a defensive investment against the, shall we say, enthusiasm with which governments are printing money. If that were to happen, its price could stabilize and even rise over the next few years, becoming something akin to “digital gold,” a phrase that sounds rather dashing, don’t you think?

The price is likely to remain a bit of a seesaw in this choppy market, undoubtedly. But if one suspects that the U.S. dollar and other fiat currencies might be losing their lustre over the next few decades – and a seasoned investor always keeps a weather eye on such things – it might be a remarkably bright idea to follow the banks and invest in a few Bitcoin ETFs. Buy, hold, and forget about them, as it were. A perfectly sound strategy, and one that allows one to get on with the more important business of enjoying a perfectly good life.

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2026-02-02 22:02