The Bitcoin ETF launch: not an orange wave but not a sell the news either

The Bitcoin ETFs were never going to be a one time event

Bitcoiners have been waiting for a proper Bitcoin ETF for a looooong time. Especially since October the hype has been intense. This ETF narrative together with the financial conditions loosening in the US have certainly helped push the price up to where it is now.

But two weeks after the launch there is not much to see. Bitcoin’s price hasn’t collapsed like many expected. But it didn’t jump suddenly to $100k per coin like a few had imagined.

So let’s recap what has happened since the launch and discuss what those ETFs are really about.

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The Bitcoin ETF launch: not an orange wave but not a sell the news either

The takeaway

What is the impact of the launch of the Bitcoin ETFs? So far the answer is none. For the future, the potential is massive. 

Right now, the main issue is that the Grayscale Bitcoin Trust must workout its transition from its former trust structure to its new ETF structure. In the short term that means a lot of outflows cancelling any big effect that might have come from the launch.

But once the GBTC situation stabilizes there are good chances BlackRock and Fidelity will keep bringing steady inflows as they have done throughout the launch. 

Only after we reach that point will we be able to see the real effect of the ETFs unlocking access to Bitcoin for a whole new category of investors.

How many Bitcoins are captured by the ETFs?