The big debut of the Bitcoin ETF generated mixed reactions, as reported by CNBC’s Ran Neuner. The superficial excitement surrounding the $4.5 billion deal seems impressive, but a deeper look analysis paints a different picture. The claim of a “terrible failure” arises when examining the composition of these trades, particularly highlighting that half of the $4.6 billion traded was tied to the Grayscale Bitcoin Trust (GBTC) and was predominantly marked by sales and exits due to its fees. higher prices and the outdated nature of your locked Bitcoin.
The big debut of the Bitcoin ETF generated mixed reactions, as reported by CNBC’s Ran Neuner. The superficial excitement surrounding the $4.5 billion deal seems impressive, but a deeper look analysis paints a different picture. The claim of a “terrible failure” arises when examining the composition of these trades, particularly highlighting that half of the $4.6 billion traded was tied to the Grayscale Bitcoin Trust (GBTC) and was predominantly marked by sales and exits due to its fees. higher prices and the outdated nature of your locked Bitcoin.
The trader suggests that rather than witnessing an avalanche of new capital into the Bitcoin market, what occurred was largely a tightening of existing positions. The crucial point here is the distinction between trading volume and new entries, the latter being seemingly insignificant on the first day.
Large accounts with substantial capital at their disposal tend to act with patience and precision. They are likely to avoid the initial frenzy of launching a new financial product and instead wait for the market to stabilize before committing significant funds. From this point of view, the first day of trading, while not indicative of immediate success in terms of new capital inflows, is not necessarily a failure but rather a period of adjustment.
Furthermore, the stability of Bitcoin’s price, which remains within the range of $45,000 to $48,000 even after approval, suggests that the market is in a state of anticipation rather than reaction. This period could be seen as a time of opportunity.
On reflection, it seems premature to label the Bitcoin ETF launch as a failure. While initial inflows may have fallen short of expectations, the infrastructure for large-scale investment is just taking shape. The prudent strategy for experienced investors – waiting out the initial volatility – is a classic approach that can still generate substantial returns in the long-term future.
