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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Posted Using InLeo Alpha