If Bitcoin ETFs continue to perform like this, the price of Bitcoin should go “even higher” according to CoinShares analyst James Buterfill in a message exchange with Cryptonews.
Will Bitcoin go further?
During a message exchange with Cryptonews, James Butterfill, director of research at CoinSharesstated that Bitcoin could continue to progress in the same way as he has been doing since January 11.
“Look at the data from January 11, 2024, we saw on a net basis $5.3 billion in inflows, making it the most successful launch of any ETF in any category. ‘assets.” James Butterfill told Cryptonews.
Largest weekly inflows into Bitcoin ETFs on record at US$2.45bnhttps://t.co/J0urqRyaWX
— James Butterfill (@jbutterfill) February 19, 2024
Indeed, according to its report published last week, Bitcoin ETFs had encountered a record inflow over a period of one week with approximately $2.45 billion.
Furthermore, the Bitcoin ETF of VanEck recently saw a pump 1000% in terms of volume.
Obviously, James Butterfill thinks the same way as Michael Saylor about supply and demand. As a reminder, Michael Saylor declared that demand was 10 times greater than supply thanks to ETFs.
“It appears that, at the moment, there is a demand shock, as the launch of these ETFs has resulted in a huge demand (of 2100 BTC per day) which cannot be met by the 900 mined each day . This has led to the rise in prices that we have seen, if the popularity of ETFs continues it is likely that this will help push prices further.” adds James Buttefill.
Bitcoin ETFs keep their promises?
“#Bitcoin absolutely diversified, by far, way better empirically than any other alternative asset class over the last 5 years, and that’s a big reason why we see investors buying it right now.”
🎙️ @CoinSharesCo‘s @jbutterfill discusses price catalysts for $BTC with @NPetallides:
— Schwab Network (@SchwabNetwork) February 14, 2024
In a tense macroeconomic context, waiting for announcements from the FED next March, Bitcoin is in a crucial period for its future price. According to James, Bitcoin is in direct competition with the same other similar asset classes. And its price will depend on rate announcements by the FED.
“We believe that Bitcoin is a store of value in competition with other stores of value. This is why when interest rates rise, Treasury yields look attractive, and this is the likely reason why the price of Bitcoin has collapsed in 2022. Now that the FED is about to to reduce interest rates, this is probably favorable for Bitcoin.” adds James.
It is clear that Bitcoin is undeniably benefiting from these ETF approvals by the SEC. This is also what Mark Connors, research director at 3IQ, also thinks.
Finally, according to James, the adoption of Bitcoin thanks to these ETFs would be felt especially in countries with high inflation.
“Besides what I mentioned before, the adoption I feel is different from a typical investment. We see most of the adoption, which is difficult to measure, in emerging markets like Turkey where surveys highlight 8% of the population owns Bitcoin. They own it because their national currency is in free fall while inflation is incredibly high – they need an anchor for their assets.” James concluded.
Sources: Original, CoinShares, James Butterfill
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