After the Bitcoin spot ETF was officially approved, the market is filled with expectations for its future. However, Bitcoin did not experience the expected significant increase in price last time, instead, it fell back from the highs by over 8%.
According to Historical Data, after the approval of Gold and Silver ETFs, their prices did not immediately reach their peaks. Instead, they successfully doubled several years later. Therefore, people can't help but wonder if the future trend of the Bitcoin ETF will repeat the old path of Gold and Silver.
Market reactions and fund inflows
On January 11, 2025, the U.S. Securities and Exchange Commission approved 11 spot ETF applications. Bloomberg data shows that on the first trading day, 11 institutions collectively attracted a net inflow of 0.655 billion USD, highlighting strong demand from investors. Among them, the best-performing fund was the Bitwise Bitcoin ETF, attracting 0.238 billion USD. This was followed by Fidelity's Wise Origin Bitcoin Fund with an inflow of 0.227 billion USD, and Blackrock's iShares Bitcoin Trust with an inflow of 0.112 billion USD.
In addition, whale investors may crash prices when selling large amounts of cryptocurrencies. For example, cryptocurrency analysis firm Nansen, after analyzing the collapse event of LUNA coin, pointed out that the initial instability of the market price and the subsequent crash were mainly caused by the sell-off of only seven traders.
ETF also joins the competition: the competition between ETFs and crypto companies.
Among cryptocurrencies...