CandleFocus

Have Bitcoin ETFs Lived Up to the Hype?

Bitcoin ETFs have exceeded expectations since their launch in January 2024, accumulating over 1 million BTC and $40 billion in assets under management. Despite initial underwhelming price movements, Bitcoin prices have risen by approximately 120% in the past year. The inflows into Bitcoin ETFs have far surpassed the inflows seen during the launch of gold ETFs, highlighting intense institutional interest in Bitcoin. A strategy of buying Bitcoin on days with positive ETF inflows and selling on days with outflows has consistently outperformed a traditional buy-and-hold approach. While Bitcoin ETFs have made a significant impact on the market, the majority of Bitcoin still remains in the hands of individual investors. The long-term outlook for Bitcoin ETFs remains highly bullish, with comparisons to gold ETFs suggesting potential for another major rally.

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