Did the Bitcoin ETFs change the correlation patterns?

Bitcoin correlations report, February 2024

One reason to look at Bitcoin's correlation to other assets is to get a feel for what is driving the plot.

Sometimes it is the macro environment. Sometimes it is portfolio rotations. And sometimes it is a structural shift in the market. 

With the introduction of the ETFs you might have expected the latter. But has anything changed really?

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Did the Bitcoin ETFs change the correlation patterns?

The takeaway

The Bitcoin ETFs could have messed up a lot of the long established correlation patterns.

But they didn't.

The Bitcoin stocks are as correlated to Bitcoin as they have ever been. And Ethereum only went from being insanely correlated to being highly correlated.

That's a sign the ETFs are mostly bringing in new participants to the market with new money. And that’s a net positive for Bitcoin and the ecosystem.

Ethereum is the only new correlation trend