Initial Bitcoin ETF Trading Volume Suggests That BTC Will Only Get Bigger
According to Vijay Marolia, Bitcoin isn’t going away anytime soon. Shane Rodgers believes that the trading volumes of spot Bitcoin ETFs indicate the growth of BTC adoption and investment. He expects this to be reflected in direct BTC prices and trading volumes, leading to massive inflows and driving up crypto valuations in the future. The initial price drop after the approval of the Bitcoin ETF is seen as a strategic shift in institutional investors’ exposure rather than a vote on a bull or bear market. Rodgers argues that the drop is normal for financial assets and that retail investors’ selling is driven by unfounded worry.
Donald Trump’s US Presidential Win Would Delay Strong Bull Market
Rodgers believes that the impact of Bitcoin ETFs on the market will be positive in both the near-term and long-term, benefiting not only BTC but also the entire crypto space. Marolia predicts slightly less volatility and increasing average volumes in the coming months, but highlights two factors that will significantly impact the market: the US Federal Reserve’s actions and the 2024 presidential elections. He suggests that a Fed rate cut or a Democratic win would be bullish for Bitcoin, while a Trump victory would slow down another strong bull market as it strengthens the dollar.
BlackRock’s Marketing Approach is a Step to Mass Adoption
BlackRock’s marketing approach for ETFs is seen as a step towards increasing mass adoption of cryptocurrencies. It targets more prudent investors with greater capital and better judgment, moving away from relying solely on retail investors. While BlackRock’s recent purchase of BTC has zero meaningful impact on its own, it shows that ETFs can scale their creation and redemption processes effectively. However, there are downsides such as transparency issues in tracking flows across different wallets and identifying market actors. These challenges may cause confusion and volatility until the market learns to adapt.
Hot Take: Massive Inflows to Follow Spot Bitcoin ETF Approval, Bull Market Questionable
According to experts, the approval of spot Bitcoin ETFs is expected to lead to massive inflows into the market. The initial price drop post-approval is seen as a strategic shift in institutional investors’ exposure rather than a bearish signal. While the impact of the ETFs on the market is generally positive, factors such as the actions of the US Federal Reserve and the outcome of the 2024 presidential elections could significantly affect Bitcoin’s performance. BlackRock’s marketing approach is seen as a step towards mass adoption, but there are challenges related to transparency and identifying market actors. Overall, while the future of the bull market is questionable, BTC is expected to continue growing in adoption and investment.
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