We Are at Almost 5 Weeks Since Bitcoin ETF Approvals and 8-9 Weeks to Bitcoin Halving
We are often caught up in daily activities and forget to step back to look at the broader picture, and time... flies.
It may not seem a short while since Bitcoin ETFs were approved because of the disappointing price evolution afterward, but to me, with all the things we have had going both in real life and in crypto, the beginning of the year surely seems like yesterday.
All spot Bitcoin ETFs were approved on January 10th and started trading the next day, which is almost 5 weeks ago. If we discount Grayscale and the other mutual funds that converted to ETFs, they seem to be a raving success, at least in their debut.
BlackRock and Fidelity are neck-to-neck trying to become the top Bitcoin ETF by asset under management, and in doing so they had the best first month of any ETF in the last 30 years. Funny it is said "in the last 30 years" since the first ETF was created in 1993. Isn't that kind of 30 years ago? Doesn't "in history" sound better? So, two bitcoin-based ETFs have the best 1st month in the history of ETFs.
While achieving this performance, they are also the only ones that experienced only inflow days during the first 30 days (so, no days when capital outflows were higher than inflows). The 3rd in the ranking is also a BlackRock ETF ("iShares Climate Conscious") launched last year, to understand what kind of a behemoth BlackRock is.
With such powerful locomotives pushing customers' fiat into the Bitcoin ETFs (which in the backend means BlackRock/Fidelity or entities associated with them buy Bitcoin), it was only a matter of time before Bitcoin reversed course and started going up again. And this week its price broke the local high it made right after the news of ETF approvals and may soon be pushing over 50k.
Timing couples well with what is left until the halving, 8-9 weeks. We might experience a little hype regarding this major regular event in the history of Bitcoin and cryptocurrency as a whole, but let's be realistic, historically speaking, true bull market hype happened around one year after the Bitcoin halving took place. What we see now is mainly generated by Bitcoin ETFs fiat influx. This has changed the rules to some degree, even if we had bull market starters in the past, but maybe not of this magnitude.
The difference between the previous bull market starters and this one is that in this case, we are talking about a turtle, not a rabbit. And if the turtle breaks all records in the first month, you can imagine how things will continue.
Why am I saying it's a turtle? If pension funds, insurance companies, etc. start investing in Bitcoin ETFs, for example, they will keep doing it month after month, not all at once, because they keep receiving new funds regularly. So, they grow their investment slowly, but surely, even if the percentage of their portfolio allocated to bitcoin and crypto remains constant.
Overall, seems like green times are ahead if you are patient enough.
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Nice to see BTC ETFs doing well. I like to look at it as more and more people being introduced to crypto, and seeing it as a good investment. As for being patient, a lot of us still here weathered the long bear market. What's another few months to a year.
Yeah, but they do it using Wall Street products, not crypto directly.
That's true. But I learned that when people say "bull market" they expect it to be all hype and to last forever, lol.
Yeah, but we got to start somewhere. Hopefully some of them interact with crypto directly eventually.
Let's hope so.
Blackrock and Fidelity has pretty high creditability amongst the public and I think people tend to trust it. I think Grayscale could have done better but the fees are kind of too large. I wonder where things will go with the halving though because I think it's kind of baked in already.
Yes, they are both huge asset managers and they haven't gotten to those positions without being perceived as trustworthy, but also by being ruthless in some situations. I haven't looked into Fidelity, but I know BlackRock has its share of criticism, for good reasons in some cases.
As day goes by, I am getting anxious how it will play out after the halving sincerely
Normally, after the halving, the hype phase of the bull market will start. But not immediately. Can go on for months before it starts.
I think it could be a gradual growth on ETF investments in the coming months as they continue to promote it to traditional investors. We indeed have to be patient enough because they best is probably yet to come and the worst is probably behind us already.
Indeed! This is more like a snowball that keeps growing the more traditional investors come in and open the road to others. Plus, some will test the water first, then will continue to invest more the more confidence they get in the new "asset class". However, the highest driving force will be regular investments made from fiat to ETFs by small or large investors. That will always keep a high buying pressure on Bitcoin and, in the future, Ethereum.
Yes yes! I think this trend will continue for some time and it may happen that the next bear market both BTC and ETH may not be overly affected since they will be more matured and stable.
We'll have to see. This has been said before and hasn't happened yet, but it's true, we didn't have crypto ETFs then.
Finally something good came from the ETF approval and btc has touched $50k. The halving is some weeks away and I'm preparing for that by hodling as much as I can and hope the bull run does not disappoint. Thanks for writing and have a great day.
I hear some people are preparing to take profit after this short bull run from 38k to 50k. I still prefer to hold and not ride all short-term waves.
Everyone is really anticipating on how this year will actually goes and turn out for the crypto space
I think it will turn out just fine. 😀