The first few days after the approval of the Bitcoin ETF were disappointing. Instead of the hoped-for “God Candle”, i.e. the direct elevator to $100,000, Bitcoin (BTC) only scratched $49,000. This was followed by what could be described as a “Sell the News Event”. Bitcoin is currently trading at 42,665 – and is therefore trading in a sideways trend.
What’s next?
So were the Bitcoin Spot ETFs from BlackRock, Fidelity, Bitwise and Co. a non-event? Not at all. How the approval of the new index funds will affect Bitcoin will depend on inflows in the coming weeks. After all, after just one day, investors were trading ETF shares for $4.4 billion. The more money flows into the ETFs, the better for BTC. Ultimately, the sponsors on the other side have to demand a lot of Bitcoin in order to be able to properly reflect the price with their product.
And so it is not surprising that massive BTC movements are being recorded just a few days after the historic approval of all eleven Bitcoin-based exchange traded funds applied for. BlackRock alone holds already almost 11,500 BTC.
For comparison: On average, miners produce 900 BTC per day. The largest asset manager in the world just took the entire new supply off the market for 13 days.
However, we won’t know until Tuesday evening German time whether Wall Street’s run on new financial products will continue. Finally, the US markets are closed today, Monday, January 15th, due to the Martin Luther King holiday.
By the way: Due to regulatory requirements, none of the approved Bitcoin Spot ETFs can be traded in Germany. You can find out here how you can still invest in regulated BTC financial products.
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