Spot ETF - Capital Flow
New Chart!
Hello, Bitcoiners!
What a fantastic start to the year, and what an exciting week ahead with the Spot ETF deadline around the corner. At this time, all signs point towards the approval of the 14 Bitcoin Spot ETFs before Jan 10th, so brace yourselves for some potentially volatile price action. Authorized Partners (APs), including JPMorgan and potentially Goldman Sachs, are being assigned by the ETF issuers. We’ve seen commercials, a $200 million seed fund by Bitwise, and VanEck pledging to donate 5% of their profit to Bitcoin Devs. This buzz around the ETFs is palpable! Surely, the SEC could still deny the ETFs, but that would be a sour look on all these institutions and, therefore, an unlikely outcome. After all, we’ve had 15 years to front-run Wall Street; this is a game-changer for Bitcoin!
Get ready for an epic journey – I'm here to assist you with the best insights, charts, indicators, and data. 👊
Remember those Spot ETF discussions? We've covered them extensively in our previous newsletters; check back as insightful charts accompany them:
Allocation of the Assets-Under-Management by the ETFs (Including Price Predictions)
This week, I've got something special for you – a brand-new chart!
Measuring Capital Flow into Bitcoin
With the approval of 14 ETFs that, in total, have a combined $30 Trillion in assets under management, we are certainly interested in tracking the tidal wave of capital inflow into Bitcoin. The above chart provides a new view of that. It’s a way to look at Fiat flowing in and out of Bitcoin (measured in BTC to normalize across all cycles).
But before we discuss the key insights of this chart and the potential volatility around the ETFs, let’s discuss the new narrative that’s being born.
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Bitcoin, the Institutional-Grade Asset
Asset Managers are gearing up, soon selling their ETF products to their customers and earning fees. In essence, Wall Street will promote Bitcoin for us.
Beyond its volatility, Bitcoin stands as digital gold, an inflation hedge, and an asset with unmatched risk-adjusted returns and sharing characteristics of gold, and the potential of a tech stock. The SEC-approved Spot ETFs symbolize Bitcoin's mainstream acceptance, reshaping corporate investment strategies.
Of course, this does not mean that all capital will flow to Bitcoin instantly; market psychology plays a key role. I think market sentiment will reflect in ETF inflows. But the outlook for the coming two years, best seen by the cheat sheet, is bullish for Bitcoin. Soon, Wall Street will be learning about the Halving.
Now, let's dive into the chart that will redefine your understanding of Bitcoin's capital flow and discuss the upcoming volatility.