Proactive Investors' crypto expert William Farrington speaks to Thomas Warner at the end of a historic week for bitcoin.
Farrington explains that the U.S. Securities and Exchange Commission (SEC) has finally approved 11 Bitcoin spot ETFs from prominent asset managers like Blackrock, Grayscale, Ark Invest, and VanEck. The decision allows US investors direct access to Bitcoin investments for the first time, a significant milestone given the size of the U.S. market compared to previous ETFs in Canada and Germany. Grayscale's Bitcoin ETF, in particular, set a new record in trading volumes, reaching $2.3 billion on its first day.
Despite this influx, the Bitcoin price didn't soar as expected. It experienced a dip, falling to around $45,600, down from the early week high of $49,000.
Farrington suggests that the moves were suggestive of a 'sell the news' situation, where the anticipation of the ETFs had already been factored into Bitcoin’s price.
Looking ahead, the focus is on the trading volumes of these new ETFs and their potential impact on Bitcoin's spot price. Experts predict significant inflows into these ETFs, possibly reaching $50 billion in the next 12 months.