- Bitcoin price is down to $30,200 amid the dissipating influence of the spot BTC ETF mania on cryptocurrencies.
- BlackRock CEO Larry Fink recently rooted for Bitcoin as an international asset committed to digitizing gold.
- As the ETF euphoria’s influence on BTC and crypto wanes, experts have explained why the winner matters.
Bitcoin Exchange Traded Funds (ETFs) have driven the recent cryptocurrency rally. While the hype pumped Bitcoin (BTC) price to as high as $31,000, the influence is fading. Nevertheless, the campaign for approval continues. Key players include BlackRock, WisdomTree, Invesco, Valkyrie, Bitwise, Fidelity, Van Eck, and Ark Invest.
Bitcoin ETFs should be approved, Crypto Twitter
Bitcoin ETFs are the current hype on Crypto Twitter, but not so much for driving crypto prices of late. In a conversation with many angles, the majority wants the US SEC to approve the filings. The driving force for this sentiment is the validation it brings to the cryptocurrency space, not for the people who understand, but for the people who do not.
Popular narratives point to a market that wants to capitalize on the price rally that would ensue upon the SEC’s approval.
News about Bitcoin ETFs has contributed to the price increase of $BTC, as it serves as a major catalyst for creating a strong narrative.
— BW (@kevinle_bw) June 29, 2023
However, Altcoins hardly benefit from a similar screnario with most attention focused on $BTC, evident through BTC Dom. pic.twitter.com/i9YBxUqHEm
Indeed, approval would see investors buy into the ETF without trading Bitcoin itself, thereby eliminating concerns of storage and security procedures characteristic of the crypto industry.
However, the experts say the real value would be long-term as the interest by institutional investors is merely the beginning of a longer-term story of traditional finance (TradFi) moving into the cryptocurrency space. This is vital given “TradFi and BlackRock are particularly connected to the $30 trillion financial advisors have.” Most of these market players are very comfortable with the ETF structure.
Bitcoin ETFs from sector analysts
A recent interview on Crypto Banter, hosting two experts in the ETF space, revealed key insights worth sharing. The host picked the minds of Eric Baltrounas, Senior ETF analyst at Bloomberg Intelligence, and James Seyfart, a research analyst from the same company focusing on ETFs and funds.
BlackRock presents as the strongest horse in the race, alongside Vanguard, as these are the biggest money managers worldwide, with the latter boasting around $7.7 trillion in global assets, slightly below BlackRock’s $9.1 trillion. Such a heft in assets means an equally expansive distribution network to other money managers.
I can make it make sense.
— Lady of Crypto (@LadyofCrypto1) July 6, 2023
Many make the mistake of thinking Blackrock is going to day trade BTC and ETH, but that's not whats happening.
BlackRock is creating a Bitcoin - and probably Ethereum - ETF to earn fee revenue from ETF traders, not to profit from Bitcoin price moves.…
In layperson language, a win for BlackRock, given its huge asset capacity, would see the ETFs pushed more aggressively down the distribution network.
Bitcoin ETF winner matters
Bitcoin ETF filings currently on the SEC’s desk have several names to them, but once one is approved, chances are high that all will launch. Nevertheless, while different products are launched, there will be differentiated exposures.
Citing the experts, some ETFs will advertise by charging little on the condition that they are allowed to lend out the assets, while others will charge a bit more on the condition that they do not lend out customers’ funds. This means that some applicants will get the bulk of the assets (liquidity) than others. BlackRock is the most dominant player in the asset management space and, even specifically, the ETF space, which means its involvement, would bring more power to the table.
Bitcoin ETFs are not a winner take all
“Bitcoin ETFs are not a winner take all; they are a winner take most,” according to Matt Hogan of Bitwise, meaning that even if all filings launch simultaneously, one will be the center of attention, getting the most assets and trading. Still, there will be plenty of room for other issuers to operate and earn their keep by offering differentiated exposures.
Therefore, it is not about rooting for one particular institution among the filings, but for unlocking most money by going for a player that would bode better for investors. Likening BlackRock and Vanguard ETFs to the International Business Machines (IBM) of this era, Eric and James expect the institutions’ offerings to be good and cheap, and with minimal complaints.
Nevertheless, this does not discredit the position of the other applicants, nor does it make them mere boilerplates in the campaign.
At the time of writing, Bitcoin price is $30,194, inching farther away from the $31,000 high induced by the ETF hype.
BTC/USDT 1-Day Chart
Unless BTC consolidates around $30,000 and gathers sufficient momentum to spring up through the selling pressure at $31,500, experts speculate a revisit of the $28,000 range, or $25,000 in the dire case.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.