The country of El Salvador is going all in on bitcoin despite its recent weakness, implementing a dollar cost averaging strategy where it looks to buy one coin per day.
The leading cryptocurrency breached the $21,000 at one point, but recently fell below $16,000 thanks to the fallout from the FTX calamity. The digital coin exchange collapsed, with bitcoin sellers reacting to the news by dumping the currency into the open market.
Of course, the FTX collapse is drawing heat from lawmakers, forcing more eyes on the cryptocurrency exchange market. At some point, more regulation is probably headed for crypto exchanges to prevent another collapse, but right now, the market is still relatively unregulated compared to the stock market.
“There is no sugarcoating it. The collapse has been a dumpster fire. Users left out to dry. Ecosystem in limbo,” Rep. Patrick McHenry, the top Republican of the House Financial Services Committee, said at a hearing examining the safety of the U.S. financial system, according to a CNBC report.
This is giving El Salvador more incentive to buy bitcoin on the dip, emboldening the country’s leadership to continue its support for the leading cryptocurrency. Late last year, bitcoin became recognized as legal tender for the country as the cryptocurrency was experiencing bullish highs that saw it climb upwards of $69,000.
We are buying one #Bitcoin every day starting tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022
Tail El Salvador’s Beat
The recent FTX fallout gives investors more reason to consider getting bitcoin exposure in a regulated market. As such, consider the ProShares Bitcoin Strategy ETF (BITO).
BITO provides the gateway for investors who want crypto exposure to diversify their assets but still want to remain within the safe confines of a regulated market. While the crypto market is growing and the government is looking into shoring up its regulatory structure, BITO can give investors the regulated crypto exposure they desire.
Additionally, the fund is actively managed, giving investors the peace of mind of knowing that their investments are in the hands of seasoned portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.
BITO is an alternative to getting decentralized exposure without direct access to the asset. Given the current economic uncertainty, now could be a good time to do so.
For more news, information, and strategy, visit the Crypto Channel.
