Source: YCharts.com
Are the ETFs Now Hitting Their Stride?
The arrival of the ETFs came on quite suddenly – they began trading the day after they received approval.
Excluding GBTC, the newly issued Bitcoin ETFs are buying ~13,920 BTC every day.
Depending on the success of the firms promoting these ETFs, and the demand for the product, we could actually see this number increase.
Advertising has just begun, and the conservative nature of traditional finance means many advisors and investors will want to see a track record for these ETFs before increasing allocations.
ETFs Change the Narrative Around Bitcoin and Crypto
Before the ETFs, Bitcoin was often mistakenly lumped in with “Crypto” as something mysterious, risky, and potentially involved primarily in illicit activity.
However, the Bitcoin ETFs change this.
Bitcoin is now being sold by Wall Street to Main Street.
With Blackrock, Fidelity, VanEck, Franklin Templeton, and other highly reputed financial firms all selling Bitcoin, the story changes: Bitcoin is legitimized in the eyes of traditional finance (and no other cryptocurrency is).
These ETFs will act as a top-of-funnel and will become an initial touchpoint for many future Bitcoiners.
It used to be crypto exchanges spending their marketing efforts on encouraging people to buy altcoins.
Now, Wall Street is set up to serve as the advertising engine for a new generation of Bitcoin investors.
Once these ETF buyers fall down the rabbit hole, companies like Swan will be there to educate them on the benefits of holding real Bitcoin in self-custody.
Bitcoin Is a Marathon, Not a Sprint
The change represented by the approval of Bitcoin ETFs should not be evaluated solely on the first couple of weeks of trading but on the long-term impact it will have.
ETF issuers have already started running marketing campaigns.
The Super Bowl ads are just around the corner.
There are approximately 29,000 retail, independent Registered Investment Advisors in the US, managing $10.6 trillion in assets across 4.5 million client accounts.
And we all know what happens when Wall Street calls all their clients and recommends a 1% allocation to Bitcoin...
Over the long term, we probably should expect higher highs and higher lows, along with decreased volatility as the asset becomes bigger.
While the ETF approvals are exciting, consider buying real Bitcoin, which you can hold for the long term free of annual fees and do with as you please, whenever you want - because with real Bitcoin, you’re always in charge.