The decision to approve spot Bitcoin exchange-traded funds (ETFs) in the United States has legitimized the cryptocurrency industry in the eyes of investors.
The U.S. Securities and Exchange Commission (SEC) nod in January brought about the first publicly traded and regulated Bitcoin-based investment vehicles.
Furthermore, the launch of the Bitcoin ETF has brought about a significant change in investor sentiment, according to Storm Partners managing partner Sheraz Ahmed.
“I truly believe that the Bitcoin ETF has a big impact not because of its nature but because of its meaning. And over the past few months, we’ve seen an incredible shift in sentiment.”
According to Dune data, US spot Bitcoin ETFs have accumulated more than $57.7 billion worth of Bitcoin in total onchain holdings.
The current flows through Bitcoin ETF | Source: Dune
Kright hip self Bitcoin ETF which is approved by the regulator
The Bitcoin ETF is an important step towards legitimizing the cryptocurrency industry, especially in the eyes of mainstream investors.
However, it is not the publicly traded products themselves but the underlying regulatory nod that is giving crypto investors more peace of mind. According to Ahmed:
“When I look into people’s eyes, I see they can finally breathe. This industry will not disappear tomorrow. And that peace of mind for an entrepreneur is like getting 8 hours of sleep.”
Capital flow enter Bitcoin ETF eases along with BTC price
On June 10, US Bitcoin ETFs broke a streak of 20 consecutive days of positive net inflows.
According to Farside Investor data, Bitcoin ETFs have since accumulated four consecutive days of net outflows, with cumulative net outflows worth more than $152.4 million on June 18.
Cash flow through Bitcoin ETF | Source: Farside Investors
Bitcoin price started falling from above $70,000 on June 7. Outflows from ETFs caused prices to correct to a more than one-month low of $64,032 on June 18 and find support at present.
Bitcoin price chart | Source: TradingView
ETF inflows are a key factor in Bitcoin’s 2024 bull run. By February 15, the Bitcoin ETF accounted for about 75% of new investments in the world’s largest cryptocurrency as it crossed the $50,000 mark.
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Minh Anh
According to Cointelegraph
