In this case, the asset being referred to is BTC, with profits linked to changes in the cryptocurrency’s price. It is noted that Bitcoin has seen a significant increase of almost 70% since the approval of spot BTC ETFs by the U.S. Securities and Exchange Commission.
BTC’s multi-week consolidation following a halving is highlighted as a common occurrence, with the asset transitioning from an accumulation phase to a parabolic run in previous cycles. Two funds have amassed over $10 billion in assets under management within weeks, yet some skepticism has been expressed.
Questions have been raised about who is selling BTC shares, particularly in the context of ETF investors purchasing them. Bloomberg’s ETF expert, Eric Balchunas, has mentioned the movement of capital flows from futures ETFs into spot BTC funds.
Additionally, the impact of the halving on dynamics has been observed in terms of sell-offs by crypto miners to maintain cash reserves. The suggestion has been made that ETF buyers might get impatient and start selling shares as BTC continues to consolidate, although growing institutional demand presents a contrasting viewpoint.
It is noted that BTC has seen a substantial jump of over 145% in the past year, with comparison made to the S&P 500’s return of 85% in the last five years, supporting the argument for investing in the leading cryptocurrency by market cap. Moreover, data from IntoTheBlock indicates that over 80% of BTC buyers are in profit, underlining the continued growth of the market, which is valued at over $40 billion.
