The impact of Bitcoin ETF on Bitcoin and the cryptocurrency market!

[SeriouslyGiveaway]

The recent approval of Bitcoin ETFs has opened a new turning point for Bitcoin as well as the cryptocurrency market. It brings extremely positive impacts to the development of this market in the future. Let me list what those impacts include!

1. Attracting traditional investors
The EFT Bitcoin Fund is like a certificate proving the legitimacy of this market. It helps traditional investors alleviate concerns about the legitimacy of this market. They boldly pour capital into this market through ETF funds, and this is not a small and extremely stable source of capital for the market. It will create a good premise for countries that previously banned or did not support Bitcoin to become more open in the near future.

2. The market will gradually stabilize and grow more sustainably
Before there were ETFs, the cryptocurrency market was considered an extremely volatile market, sometimes fluctuating up to several dozen to several hundred percent. This not only causes confusion for participants, but also creates extremely risky psychology for those who want to learn about this market. But when ETFs come into play, they can help mitigate this wild and volatile volatility. ETFs will provide diversification, and they are also the ones who will regulate the market, making the market more stable, reducing risks for investors.

3. Bitcoin's popularity and acceptance soars
This is quite obvious when the major US ETFs were approved, which brought huge worldwide attention to Bitcoin. From there, they will learn what Bitcoin is, and help promote Bitcoin to a larger number of users by chance. Besides, they will understand what it is like to use Bitcoin in daily life as well as in other fields besides the financial market, who in the past they only viewed Bitcoin as a speculative product, and only for fraudulent purposes.

4. Create more jobs related to the crypto field
The appearance of ETF funds will lead to a strong wave of investment capital flowing into the market to develop projects. The cryptocurrency market goes hand in hand with technological development, so attracting capital inflows is very easy. That opens up more space and economic potential for projects to develop, meaning they will have to expand their company scale and human resources. The labor market in the information technology industry as well as crypto has been very hot in recent years. And I firmly believe that the recruitment demand in this crypto industry will increase with the development of the market.

In short, the launch of Bitcoin ETFs I think brings a lot of positive things and opportunities to many people. This can be considered a period of transferring humanity's wealth, opening a new era for all of us. Let's find out and seize this opportunity!

[Darker45]

1. Attracting traditional investors

This is good as far as the price is concerned. The demand is there. However, on the other hand, these traditional investors don't believe in the main purpose of Bitcoin. BlackRock's Larry Fink himself doesn't believe that Bitcoin is a currency. These players don't believe in the essence of Bitcoin. They don't see Bitcoin as money. In this regard, I don't think they're one of us.

2. The market will gradually stabilize and grow more sustainably

Not true. You must have noticed how the price has been fluctuating wildly ever since the spot ETF was approved.  

3. Bitcoin's popularity and acceptance soars

I agree. But, again, the question would be, how is Bitcoin popular? How is it accepted? If Bitcoin's popularity and acceptance are solely grounded on its being a new asset class, then that would be questionable. If this kind of popularity and acceptance flatly reject its being a legitimate money, then it might even be detrimental.

4. Create more jobs related to the crypto field

Forget about the crypto field. It's heavily flooded with scams. Scam projects, those that are freely riding the waves of Bitcoin's popularity, indeed create jobs, but it's not worth it. The negative effects of these scams far surpass job creation. I would wish that these jobs won't be created if it means there will be scam victims all over the world.

[tranthidung]

1. Attracting traditional investors
The EFT Bitcoin Fund is like a certificate proving the legitimacy of this market. It helps traditional investors alleviate concerns about the legitimacy of this market. They boldly pour capital into this market through ETF funds, and this is not a small and extremely stable source of capital for the market. It will create a good premise for countries that previously banned or did not support Bitcoin to become more open in the near future.

This is true.

We are witnessing massive new capital in Bitcoin market since approvals of Bitcoin Spot ETFs in January 2024.

Bitcoin Spot ETF Tracker

2. The market will gradually stabilize and grow more sustainably
Before there were ETFs, the cryptocurrency market was considered an extremely volatile market, sometimes fluctuating up to several dozen to several hundred percent. This not only causes confusion for participants, but also creates extremely risky psychology for those who want to learn about this market. But when ETFs come into play, they can help mitigate this wild and volatile volatility. ETFs will provide diversification, and they are also the ones who will regulate the market, making the market more stable, reducing risks for investors.

It is a theory now and data in last one year, months before Bitcoin Spot ETF approvals because people were FOMO and speculated that with participation of BlackRock, probability of approval is very high.

We must need more time to be sure about things like better stability, less volatility but my warning is you must look at high volatility times in stock market, bank stocks and gold, oil markets to see that even in traditional markets, there are times for massive high volatility.

Hence, I really don't exclude any chance in future that Bitcoin will have big corrections.

Bitcoin price history, ATHs and bottoms.

[legiteum]

5. Making a mockery of the original intent of Bitcoin and the blockchain architecture generally.

By definition the ETF is absolutely centralized, meaning that investors are investing in absolutely nothing but the name, "Bitcoin" when they buy shares of the ETF.

The ETF underscores that very, very few people have a need to ensure their government cannot subpoena their transactions, and most people do not want to hold a large portion of their wealth on their own person, but would rather pay somebody to guard it for them e.g. a bank of financial institution.

In a sense the ETF represents the "grown up" view of Bitcoin--but it makes the original concept of Bitcoin look like a toy.

[Alpha Marine]

1. Attracting traditional investors

This is true. Now bitcoin can be traditional just the way shares and bonds are. Big investors will put money into it. When something is accepted by big investors, it helps adoption. So now it may no longer be "that bubble" or scam to people. And the government will begin to be less strict towards it. This confirms your 3rd point that the popularity and acceptance of Bitcoin would increase.

2. The market will gradually stabilize and grow more sustainably

But this, I do not agree with. I don't believe ETF would make Bitcoin less volatile. The market is still controlled by the market forces of demand and supply, so it still leaves a lot of room for volatility. Other traditional investments like gold, stock, and Forex are still volatile in their own way, so why do you think Bitcoin would be different? 

[Kakmakr]

You have mentioned the positive impact of Bitcoin ETFs, but there are also many negative impacts, namely :

The bitcoins that are bought for these Bitcoin ETFs are locked into a centralized database and it is taken out of circulation.

Bitcoin's future are determined by the miners fees that are generated by on-chain transaction and these coins stay in these cetralized databases and they generate zero miners fees.

Huge amounts of coins are also owned by centralized financial institutions and less people can buy those coins and the remaining coins become very expensive. (The idea was to spread adoption to millions of people and not just a few super rich companies)

[Iranus]

2. The market will gradually stabilize and grow more sustainably
Before there were ETFs, the cryptocurrency market was considered an extremely volatile market, sometimes fluctuating up to several dozen to several hundred percent. This not only causes confusion for participants, but also creates extremely risky psychology for those who want to learn about this market. But when ETFs come into play, they can help mitigate this wild and volatile volatility. ETFs will provide diversification, and they are also the ones who will regulate the market, making the market more stable, reducing risks for investors.

I remember a few days ago bitcoin rose to 73k5$ but very quickly it dropped below 66k$ and that is not the first time bitcoin has had strong fluctuations since the ETF was approved. I don't see any changes that suggest bitcoin is becoming more stable like we once thought. Bitcoin is still the same, still volatile and even more volatile since the adoption of ETFs. Furthermore, bitcoin's volatility creates an opportunity for us to make profits, why do people prefer it to be more stable?

We all want to make huge profits from bitcoin but are afraid of its risks and volatility. Is that unreasonable and are we too greedy? Everything is proportional to each other, high profits come with high risks, so if anyone feels afraid of bitcoin's fluctuations, it is best not to participate in bitcoin.

[Zlantann]

2. The market will gradually stabilize and grow more sustainably

Bitcoin ETF in the US is still young so we can not certainly state that it will bring stability to the Bitcoin market. These institutional investors are indeed buying more coins thereby but it might be difficult for them to manipulate or make the market stable. They might be able to cause FUD or FOMO but the market will always correct itself. We have to wait and see how things will play out in a few years.

3. Bitcoin's popularity and acceptance soars

That's true, many people would have never invested without these big ETF providers. These institutional investors have enough funds for advertising which will lead to more Bitcoin awareness and even adoption. But the effect is that they are introducing people to centralisation.

4. Create more jobs related to the crypto field

Most of these jobs will be mostly created in the US however virtual crypto jobs could spill over to other countries. I just hope that other countries will approve ETF so that jobs will be created.

[Natsuu]

The green light for Bitcoin ETFs is a game-changer, bringing a ton of good stuff to the crypto world. First off, it reels in old-school investors, making them feel comfy about diving into the market. That means more cash flow, which is great plus ETFs smooth out the crazy ups and downs, making the market less of a rollercoaster. With big names getting behind Bitcoin, it's bound to become even more mainstream, sparking curiosity and adoption. And hey more investment means more jobs in the crypto scene which is awesome. Bottom line is that Bitcoin ETFs open up a whole new world of opportunities so lets ride this wave

[Youngkhngdiddy]

The recent approval of Bitcoin ETFs has opened a new turning point for Bitcoin as well as the cryptocurrency market. It brings extremely positive impacts to the development of this market in the future. Let me list what those impacts include!

1. Attracting traditional investors
The EFT Bitcoin Fund is like a certificate proving the legitimacy of this market. It helps traditional investors alleviate concerns about the legitimacy of this market. They boldly pour capital into this market through ETF funds, and this is not a small and extremely stable source of capital for the market. It will create a good premise for countries that previously banned or did not support Bitcoin to become more open in the near future.

2. The market will gradually stabilize and grow more sustainably
Before there were ETFs, the cryptocurrency market was considered an extremely volatile market, sometimes fluctuating up to several dozen to several hundred percent. This not only causes confusion for participants, but also creates extremely risky psychology for those who want to learn about this market. But when ETFs come into play, they can help mitigate this wild and volatile volatility. ETFs will provide diversification, and they are also the ones who will regulate the market, making the market more stable, reducing risks for investors.

3. Bitcoin's popularity and acceptance soars
This is quite obvious when the major US ETFs were approved, which brought huge worldwide attention to Bitcoin. From there, they will learn what Bitcoin is, and help promote Bitcoin to a larger number of users by chance. Besides, they will understand what it is like to use Bitcoin in daily life as well as in other fields besides the financial market, who in the past they only viewed Bitcoin as a speculative product, and only for fraudulent purposes.

4. Create more jobs related to the crypto field
The appearance of ETF funds will lead to a strong wave of investment capital flowing into the market to develop projects. The cryptocurrency market goes hand in hand with technological development, so attracting capital inflows is very easy. That opens up more space and economic potential for projects to develop, meaning they will have to expand their company scale and human resources. The labor market in the information technology industry as well as crypto has been very hot in recent years. And I firmly believe that the recruitment demand in this crypto industry will increase with the development of the market.

In short, the launch of Bitcoin ETFs I think brings a lot of positive things and opportunities to many people. This can be considered a period of transferring humanity's wealth, opening a new era for all of us. Let's find out and seize this opportunity!

  A successful Bitcoin spot ETF (Exchange-Traded Fund) could have a significant impact on the cryptocurrency market. It could increase the accessibility of Bitcoin to a wider range of investors, which could lead to increased demand for Bitcoin and potentially drive up the price. Additionally, a Bitcoin ETF could help to legitimize Bitcoin as an investment, which could help to reduce some of the perceived risks associated with investing  in cryptocurrencies. However, it's important to note that the impact of a Bitcoin ETF on the cryptocurrency market is difficult to predict, and there are many factors that could influence the price of Bitcoin in the long term. The demand for Bitcoin through ETFs can influence its price. If there is a surge in demand for the ETF shares, it may lead to increased buying pressure on Bitcoin, potentially driving up its price. Conversely, if there is a sell-off in the ETF, it might result in downward pressure on Bitcoin prices.
  The existence of regulated ETFs may contribute to the perception of maturity in the Bitcoin market. This could attract a more risk-averse set of investors who were previously hesitant to enter the cryptocurrency space due to concerns about security, custody, and regulatory issues. The regulatory approval of Bitcoin ETFs can signal a more favorable stance towards cryptocurrencies from regulatory bodies. This increased regulatory clarity can encourage more institutional participation and investment in the cryptocurrency space. It's essential to note that the impact of Bitcoin ETFs can vary, and their influence on the market is subject to several factors, including regulatory developments, investor sentiment, and overall market conditions.

[Helena Yu]

A successful Bitcoin spot ETF (Exchange-Traded Fund) could have a significant impact on the cryptocurrency market. It could increase the accessibility of Bitcoin to a wider range of investors, which could lead to increased demand for Bitcoin and potentially drive up the price.

I won't say it's successful, they're still new, just like a shitcoin listed on centralized exchange and people will buy it which make the shitcoin reach ATH. But after few weeks or months, the price will drop significant and many shitcoin become dead coins, so we need to wait until ETFs are nothing new anymore. Moreover ETFs haven't cross bear market, so we don't know what they will do in that situation.

[kentrolla]

It has definitely brought in more money as those who were skeptical about Bitcoin ended up investing into it and it was one more step towards being mainstream but however these are only short term impact and if you ask me what would be the long term impact I would say long term impact won't be much as there may be some other similar adoption in the future which may have more impact. But so far this Bitcoin ETF has helped its price movement in a positive way.

[livingfree]

It has definitely brought in more money as those who were skeptical about Bitcoin ended up investing into it and it was one more step towards being mainstream but however these are only short term impact and if you ask me what would be the long term impact I would say long term impact won't be much as there may be some other similar adoption in the future which may have more impact. But so far this Bitcoin ETF has helped its price movement in a positive way.

They're relying more with the institutions than of those that are longer in the market. They believe that they should be the trendsetter and that's why when the ETFs for Bitcoin spot has been approved. That had given them the signal.

While value wise, we saw the effect of it for Bitcoin and that has also helped to gain trust. But they need to understand that they're not directly investing to Bitcoin.

They can do that to their own but instead, they're allowing these institutions to do it for them.

[Faisal2202]

3. Bitcoin's popularity and acceptance soars
This is quite obvious when the major US ETFs were approved, which brought huge worldwide attention to Bitcoin.

This factor fits best in the current situation we are in, by we I mean my country. Because in my country crypto is banned, and we have taken a lot of debt from the IMF, and which means our government has to accept IMFs conditions as well, in the financial sector only. And now recently IMF asked our government to put a taxation on the crypto sector as well. This means our government has to agree with them and in order to do so, they have to lift the ban on crypto as well.

This means there will be more adoption as well because when the crypto ban is lifted more Pakistanis will join crypto and invest more funds in it, although in my opinion, the time to lift the ban is not right because crypto is already on top, and lifting the ban and streamlining the adoption at this time will only serve the purpose of bringing newbies money into the market which then will be used as liquidation to exit the market for old comers.

[Benedictare]

   Bitcoin ETF can exist in possibility to brings more cash to the Bitcoin market ,to make more easier of capable of producing price discovery ,attract investors from various countries ,and can reduce price volatility ,when you have an upward flow of various institutions participating during investment . It gives investors the opportunity to be aware of the price movement of Bitcoin without really having an asset itself .

   When Bitcoin ETF increases the demand for Bitcoin, it makes more investors to easily be involved in the market and because of its scarcity and high demand will definitely increase its price.

[Zaguru12]

It has definitely brought in more money as those who were skeptical about Bitcoin ended up investing into it and it was one more step towards being mainstream but however these are only short term impact and if you ask me what would be the long term impact I would say long term impact won't be much as there may be some other similar adoption in the future which may have more impact. But so far this Bitcoin ETF has helped its price movement in a positive way.

Yes it has definitely helped the price movement to soar higher because large investors came in with big amount to buy and this causes a very strong demand. But let’s not forget that the price movement isn’t only influenced by them only but also the FOMO around the halving. Yes this market surge isn’t like the past trend but not always that history repeats itself. I feel like ETF alone didn’t play the role of this surge but information getting widespread as we grow into the space also played its part

[oktana]

Point number 1 is the main point! It will attract traditional investors. However, I wish these investors could invest directly in Bitcoin instead of doing it through ETF which is regulated as it stands against the idea of Bitcoin which is to take out that surveillance. It will help Bitcoin get more popular but again, I wish it’ll make people see that Bitcoin isn’t just about making profits but is a currency itself.

[Yaunfitda]

The recent approval of Bitcoin ETFs has opened a new turning point for Bitcoin as well as the cryptocurrency market. It brings extremely positive impacts to the development of this market in the future. Let me list what those impacts include!

1. Attracting traditional investors
The EFT Bitcoin Fund is like a certificate proving the legitimacy of this market. It helps traditional investors alleviate concerns about the legitimacy of this market. They boldly pour capital into this market through ETF funds, and this is not a small and extremely stable source of capital for the market. It will create a good premise for countries that previously banned or did not support Bitcoin to become more open in the near future.

I think this was really the first goal of entities that apply and been approved to handle Bitcoin ETF's. It will somewhat bring a sense of legitimacy as this is the main concern of some traditional investors. Although it's going to be still very volatile and decentralized and very technical for traditional investors, but at least this entities will give them the option for them not to worry about it. And that's what we then see there, as millions if not billions already is flowing in the market since last month and pushing the price to new all time high. And now even UK financial watchdogs is allowing crypto asset-backed ETN market for professional investors.

The Financial Conduct Authority (FCA) will not object to requests from Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cryptoasset-backed Exchange Traded Notes (cETNs). These products would be available for professional investors, such as investment firms and credit institutions authorised or regulated to operate in financial markets only.

https://www.fca.org.uk/news/statements/fca-updates-position-cryptoasset-exchange-traded-notes-professional-investors

So this could be the domino effect and maybe some countries in Europe could follow too.

[Wind_FURY]

About "attracting more traditional investors" - In merely two months, the ETFs have accumulated 1% of the total supply of Bitcoin.

https://dune.com/hildobby/btc-etfs

Many large asset managers who wanted to buy Bitcoin but didn't have a way to buy them through legacy markets can currently bid spot ETFs. Plus the largest asset managers are not sensitive in price. They're sensitive in portfolio allocation. The will allocate 3% or 5% of their portfolio and bid the spot ETFs whether Bitcoin's price is $70,000, $90,000 or $150,000 or higher. They WILL keep bidding until they meet their allocation target.

[avikz]

The impact of Bitcoin ETF on the cryptocurrency market, is negative. While retail investors are investing their money in Fiat to get exposure of Bitcoin, these fund houses are actually becoming the controller of a large amount of Bitcoins. Which puts them in a position to control the market. This is not good for the common Bitcoin investors like us.

We are already seeing how much manipulation is ongoing. The more corporate launch crypto related ETF, the more control they will have on the market. It will eventually put our interest out of the market.