Cryptocurrency investors entered 2023 with cautious optimism. After the dramatic collapse of FTX in late 2022—once the world’s largest crypto exchange—bitcoin began the year trading just above $16,000, a steep drop from its 2021 peak of over $60,000. Yet by year-end, sentiment had shifted dramatically. Driven by growing confidence in regulatory progress and institutional adoption, bitcoin surged, delivering a staggering 155% return over the calendar year.
The catalyst? A long-anticipated breakthrough: the U.S. Securities and Exchange Commission (SEC) approved rule changes paving the way for spot bitcoin exchange-traded funds (ETFs). On January 10, 2024, 11 new bitcoin ETFs officially began trading, marking a pivotal moment for digital assets in traditional finance.
But with such explosive growth already priced in, the big question remains: Is this the start of a new bull market, or are investors getting ahead of themselves?
“This is definitely an inflection point,” says Brian Vendig, president of MJP Wealth Advisors in Westport, Connecticut. “We’re seeing crypto move from the fringes into mainstream portfolios.”
Let’s explore what experts are saying about the future of bitcoin and whether now is the right time to invest.
What the New Bitcoin ETFs Mean for Investors
The launch of spot bitcoin ETFs is more than just a regulatory win—it’s a game-changer for accessibility.
👉 Discover how ETFs are making crypto investing easier than ever.
Previously, investors had to navigate complex crypto exchanges, manage private keys, and bear high transaction fees to gain exposure to bitcoin. Now, through a simple brokerage account, they can buy and hold bitcoin indirectly—just like stocks or bonds.
Matthew Sigel, head of digital assets research at VanEck—one of the firms behind a newly approved ETF—believes this shift will unlock significant demand.
“We think it was a huge step forward that will unlock significant demand, given the cost savings for retail buyers and the security available to institutional purchasers,” Sigel explains.
For financial advisors and wealth managers, these ETFs open the door to including crypto in diversified client portfolios—something previously difficult due to custody and compliance concerns.
“They don’t have the ability to put these bitcoin ETFs into client discretionary portfolios yet,” Sigel notes. “But we can observe several banks and brokers already preparing these models, which we expect to emerge later this year.”
What’s Next? More ETFs and Broader Adoption
The approval of bitcoin ETFs isn’t the end—it’s the beginning of a broader trend toward institutional integration.
Experts predict that ether (ETH), the native cryptocurrency of the Ethereum network, will be next in line for ETF approval. Todd Rosenbluth, head of research at VettaFI, sees this as inevitable.
“It seems inevitable that we’ll have ETFs tied to ether, as a secondary cryptocurrency for people to invest in,” Rosenbluth says. “The door is now open for a range of ETFs that include bitcoin as well as other assets.”
We may soon see hybrid investment products that blend bitcoin with traditional assets like S&P 500 equities. More sophisticated strategies could also emerge—such as funds using bitcoin as a hedge against inflation or equity market volatility.
These developments signal a maturing ecosystem where crypto is no longer an isolated asset class but part of a broader financial strategy.
The Reality Check: It’s Still Speculation
Despite the excitement, experts urge caution.
Stephane Ouellette, founder and CEO of FRNT Financial, points out that while bitcoin’s 155% surge is impressive, it doesn’t yet reflect widespread public frenzy.
“You’ve seen some speculation come in on the announcement of bitcoin ETFs,” he says, “but all the metrics we look at to gauge where we’re at in the market cycle tell us that we’re so far away from the FOMO market where everyone and their dog is talking about crypto.”
Indicators like Google Trends searches for “bitcoin,” venture funding for crypto startups, and trading volumes remain relatively low compared to previous bull runs. This suggests we may be in the early stages of a new cycle—but not yet at peak momentum.
And unlike stocks, cryptocurrencies don’t derive value from earnings, dividends, or cash flows. Their prices are driven almost entirely by investor sentiment and macroeconomic trends.
“It’s all still speculation. That hasn’t changed,” Vendig emphasizes.
Should You Invest in Bitcoin? Key Questions to Ask
If you're considering adding crypto to your portfolio, experts recommend starting with clarity.
Ask yourself:
- What role should crypto play in your financial goals?
- Are you investing for long-term value preservation or short-term gains?
- How much risk can you realistically tolerate?
Vendig advises keeping allocations small and intentional.
“I’d say 1% on the more conservative side, and no more than 5% of your total portfolio if you’re a growth-focused investor,” he recommends.
This approach allows exposure without jeopardizing overall financial stability.
👉 Learn how to determine the right crypto allocation for your risk profile.
Frequently Asked Questions (FAQ)
Q: What caused bitcoin’s 155% rise in 2023?
A: The surge was largely driven by anticipation of spot bitcoin ETF approvals, increased institutional interest, and improved market sentiment following the 2022 crypto downturn.
Q: Are bitcoin ETFs safe for average investors?
A: Yes—ETFs offer regulated, custodied exposure without requiring direct ownership of crypto. However, they still carry market risk, and values can be volatile.
Q: Does the ETF approval mean bitcoin is now mainstream?
A: It’s a major step toward mainstream adoption. ETFs make it easier for traditional investors and advisors to access bitcoin within existing financial frameworks.
Q: Could ether (ETH) get its own ETF soon?
A: Many experts believe so. With bitcoin ETFs approved, regulatory scrutiny on Ethereum-based products is increasing, making an ether ETF likely in the coming years.
Q: Is now too late to invest in bitcoin?
A: There’s no definitive answer. While prices have risen significantly, long-term believers argue that bitcoin’s scarcity and growing utility could support future gains—but past performance doesn’t guarantee future results.
Q: How much of my portfolio should be in crypto?
A: Most financial advisors suggest limiting crypto exposure to 1%–5%, depending on your risk tolerance and investment objectives.
Final Thoughts: Proceed with Eyes Wide Open
The approval of spot bitcoin ETFs marks a turning point—not just for bitcoin, but for the entire digital asset landscape. It validates years of advocacy and signals growing acceptance from regulators and institutions alike.
Yet beneath the optimism lies a fundamental truth: cryptocurrencies remain highly speculative assets. They lack traditional valuation metrics, are subject to extreme volatility, and depend heavily on regulatory developments and investor sentiment.
For those considering entry, the key is balance. Don’t chase returns blindly. Instead, evaluate how crypto fits into your broader financial strategy—and keep allocations measured.
As Vendig puts it: “If an investor can answer that appropriately, then you can actually figure out the sizing you should have. Do you want to dip your toe into this asset class? Or is that asset class not even rational for you as an investor?”
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