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The recently renewed optimism for Bitcoin (BTC) approved Spot Exchange-Traded Fund (ETF) is fueling a “Great Accumulation Race” for Bitcoin, according to industry experts.
Last week, Fidelity, Invesco, Wisdom Tree and Valkyrie, following investment giant BlackRock, filed for a spot bitcoin ETF with the US Securities and Exchange Commission, which some analysts believe is the reason for the 19% rise in the price of bitcoin to 30,240 dollars from June.16.
5 Bitcoin ETF applications in 5 days!
– black rock
– Wisdom Tree
— Lark Davis (@TheCryptoLark) June 21, 2023
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, said on June 21 that he believes a “great accumulation” of Bitcoin has begun between institutions and retail investors.
He suggested that buying Bitcoin before an ETF goes public is akin to buying before an initial public offering and suggested that the “gateways” for buying Bitcoin are “quickly closing”.
The Great Accumulation of bitcoin has begun. Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast. If bitcoin was the most obvious and best investment of the previous decade, this…
— Cameron Winklevoss (@cameron) June 21, 2023
MicroStrategy Chairman Michael Saylor addressed the issue in his own post, suggesting that retail investors may soon be sidelined by rising institutional demand:
“The window for outstripping institutional demand for bitcoin is closing.”
Bitcoin is currently trading at $30,240 hands-on while the cryptocurrency’s fear and greed index has skyrocketed from 49 (neutral) to 65 (greedy) in just the past two days.
In an interview with CNBC on June 21, bitcoin investor Anthony Pompliano said he expects a tug of war between retail investors and Wall Street:
“We have institutions and individuals trying to get their share of the 21 million bitcoins that will ever exist. The retail investor has a head start for 15 years and has accumulated all the bitcoins that have been mined and issued into circulation, but 68% of them have not moved within a year.”
“People forget that Bitcoin’s market cap went from $0 to almost $1 trillion with little to no institutional involvement,” Pompliano said in a June 21 Twitter post.
So when “Wall Street and BlackRock hit the market,” Pompliano expects Bitcoin to become “extremely illiquid” because retailers “don’t want to sell on Wall Street,” he added in an interview with CNBC.
BlackRock shows up and bitcoin is up 20% for the week.
People forget that bitcoin went from $0 to nearly $1 trillion market cap with almost no institutional participation.
If retail investors were good for $1T, what do you think happens when the deep pockets come play?
— Pomp (@APompliano) June 21, 2023
Related: Grayscale Bitcoin Trust Nears 2023 Highs on BlackRock ETF Registration as Buyers Step Up
Meanwhile, Dylan Leclerc, bitcoin analyst and founder of 21st Paradigm, explained that the price of bitcoin is now “extremely inelastic” – “more than ever” – amid recent ETF filings that serve as a “catalyst” for a large number of new ones entering the market. .
However, Leclerc predicts that no ETF filing will be approved by the SEC until January or February 2024.
Bitcoin’s supply is extremely inelastic, more so than ever currently.
A spot ETF is obviously a catalyst for a large amount of new flows to come into the market, which not only has changed the narrative but has prompted others to front run said future flows.
TLDR: Send it. pic.twitter.com/Jd8Gm8o3Mx
— Dylan LeClair (@DylanLeClair_) June 21, 2023