Bitcoin reached a new all-time high of $69,000 on September 29, just two months after the launch and approval of ten bitcoin ETFs. This rapid growth has sparked discussions about the impact of ETFs on the market.
Seth Ginns, managing partner at CoinFund, believes that while the new high would have happened eventually, the ETFs have accelerated the cycle. He stated, “The new all-time high would have happened without the ETFs, but we’ve likely accelerated this cycle with the ETF flows.”
Evidence also supports the idea that ETFs have contributed to the recent surge in Bitcoin prices. Grayscale’s GBTC has lost over 200,000 BTC since the launch of ETFs in January, while spot funds have accumulated 163,000 tokens. Notably, BlackRock and Fidelity alone hold over 196,000 Bitcoins.
Jim Iuorio, a managing director at TJM Institutional Services and experienced futures and options trader, believes that the introduction of ETFs has been a significant factor in the recent rally. He stated, “I definitely think the introduction of the ETF was a significant tailwind and, without it, we wouldn’t be at all-time highs.”
In addition to ETFs, the current political climate and expectations of the U.S. Federal Reserve’s actions have also played a role in Bitcoin’s growth. Iuorio stated that the rally is a “no confidence” vote for fiat currency and a reaction to the Fed’s potential restart of quantitative easing and accommodative policies.
Since their launch in January, ETFs have seen a 50% increase in Bitcoin prices. BlackRock’s investment in the token led to a tripling of its price by June 2023. However, the SEC rejected Grayscale’s hopes for a spot ETF.
Nate Geraci, president of the ETF store, also believes that ETFs have played a significant role in Bitcoin’s recent surge. He stated, “While there are likely multiple factors driving the price of bitcoin right now, there is no question ETFs are playing a starring role.” He also noted that the convenience of the ETF wrapper has made it easier for retail and institutional investors to enter the market.
