Recently, there has been a surge in optimism for the approval of a Bitcoin (BTC) spot exchange-traded fund (ETF), triggering what some experts are calling “The Great Accumulation Race” for Bitcoin. Several major players in the investment industry, including Fidelity, Invesco, Wisdom Tree, and Valkyrie, have followed in the footsteps of investment giant BlackRock and applied for a Bitcoin spot ETF with the United States Securities Exchange Commission (SEC). This flurry of ETF applications is believed to be the main reason behind Bitcoin’s 19% price surge to $30,240 since June 16.
Cameron Winklevoss, the co-founder of cryptocurrency exchange Gemini, believes that “The Great Accumulation” of Bitcoin has begun between institutions and retail investors. He compares buying Bitcoin before the ETFs are launched to a pre-Initial Public Offering purchase and suggests that the time to buy Bitcoin is running out quickly. He states that the “floodgates” for buying Bitcoin will soon close.
Michael Saylor, the Executive Chairman of MicroStrategy, also weighed in on the situation. He suggests that as institutional demand for Bitcoin increases, retail investors may soon be pushed aside. He states that the window to front-run institutional demand for Bitcoin is closing.
The price of Bitcoin currently stands at $30,240, and the Crypto Fear and Greed index has skyrocketed from 49 (Neutral) to 65 (Greed) in just the last two days. This indicates a significant shift in market sentiment towards bullishness.
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In an interview with CNBC, Bitcoin investor Anthony Pompliano expects a tug-of-war to take place between retail investors and Wall Street. He notes that institutions and individuals are scrambling to get their share of the limited supply of 21 million Bitcoins. Retail investors have accumulated a significant portion of the existing Bitcoin supply over the past 15 years, but a large percentage of it remains untouched. Pompliano believes that when Wall Street and institutional investors enter the market, Bitcoin will become highly illiquid because retailers will be hesitant to sell to them.
Dylan LeClair, a Bitcoin analyst and founder of 21st Paradigm, explains that Bitcoin’s price has become extremely inelastic, especially in light of the recent ETF filings. He predicts that no ETF application will be approved by the SEC until January or February 2024, but he believes that the anticipation of ETF approval has already prompted a large influx of new capital into the market.
Overall, the increasing number of ETF applications for a Bitcoin spot ETF has reignited optimism in the market and triggered a race among investors to accumulate Bitcoin. Retail investors, who have been accumulating Bitcoin for years, may soon face competition from institutional investors as they seek to get their share of the limited supply. Despite the optimistic sentiment, it is important to note that the approval process for ETFs can be lengthy, and there is no guarantee that all the applications will be approved. Nonetheless, the growing interest in Bitcoin ETFs indicates the increasing mainstream acceptance of cryptocurrencies as a legitimate investment asset class.
