With spot Bitcoin ETFs filings helping boost the price of Bitcoin, some suggest the “window to front-run institutional demand is closing.”
Recently renewed optimism for an approved Bitcoin (BTC) spot exchange-traded fund (ETF) is igniting “The Great Accumulation Race” for Bitcoin, according to industry pundits.
Over the past week, Fidelity, Invesco, Wisdom Tree and Valkyrie have followed investment giant BlackRock in applying for a Bitcoin spot ETF with the United States Securities Exchange Commission, which some analysts believe is the reason for Bitcoin’s 19% price surge to $30,240 since June 16.
5 Bitcoin ETF applications in 5 days!
– Blackrock
– Fidelity
– Invesco
– Wisdom Tree
– Valkyrie— Lark Davis (@TheCryptoLark) June 21, 2023
Cameron Winklevoss, the co-founder of cryptocurrency exchange Gemini, stated on June 21 that he believes “The Great Accumulation” of Bitcoin has begun between institutions and retail investors.
He suggested that buying Bitcoin prior to the ETFs hitting the public market is akin to that of a pre-Initial Public Offering purchase and suggested that the “floodgates” for buying Bitcoin are “closing fast.”
The Great Accumulation of bitcoin has begun. Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast. If bitcoin was the most obvious and best investment of the previous decade, this…
— Cameron Winklevoss (@cameron) June 21, 2023
MicroStrategy Executive Chairman Michael Saylor weighed in on the subject in his own post, suggesting that retail investors may soon be pushed aside by increasing institutional demand:
BlackRock shows up and bitcoin is up 20% for the week.
People forget that bitcoin went from $0 to nearly $1 trillion market cap with almost no institutional participation.
If retail investors were good for $1T, what do you think happens when the deep pockets come play?
— Anthony Pompliano 🌪 (@APompliano) June 21, 2023
Meanwhile, Dylan LeClair, a Bitcoin analyst and founder of 21st Paradigm, explained that Bitcoin’s price is now “extremely inelastic” — “more so than ever” — amid the recent ETF filings, which are serving as a “catalyst” for large amounts of new flows into the market.
However, LeClair predicts that no ETF application will be approved by the SEC until January or February 2024 at the earliest.
Bitcoin's supply is extremely inelastic, more so than ever currently.
A spot ETF is obviously a catalyst for a large amount of new flows to come into the market, which not only has changed the narrative but has prompted others to front run said future flows.
TLDR: Send it. pic.twitter.com/Jd8Gm8o3Mx
— Dylan LeClair 🟠 (@DylanLeClair_) June 21, 2023