Did ETFs really make Bitcoin attractive to investors?

[Japinat]

According to this article:  Axios Crypto Newsletter

The approval of Bitcoin ETFs 15 months ago demonstrated that a lot of capital was waiting to hit buy on bitcoin as soon it got a regulated wrapper.

And last week was the best week all year for crypto ETFs.

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

Where does that leave us (small investors)?

[betswift]

Bitcoin is still Bitcoin, with or without a bigger factor of volatility.

BTC becomes only bigger in its value and price, so it's natural for the volatility to become less and less of a factor for it.

It leaves us with the task of accumulating more and hodl.

[GreatArkansas]

I don't see any harm in small/retail investors. You can still buy any amount of Bitcoin, you can own Bitcoin in your personal wallet. You can still use Bitcoin in any transaction you want.
So for me, ETFs have both good and bad advantage of effects on Bitcoin.

[crwth]

I think the effect of ETFs is relatively slow in that sense. It's just about to make an impact once it has been a while. Maybe many investment firms are polishing their policies in the application they would have, and then investing in it. I think it's not an immediate impact, but it has an effect in the long run. I don't think there would be massive price increases anymore in BTC, but there might be for other coins.

We, small investors, should believe in it and continue to invest what we can afford.

[shield132]

ETFs made Bitcoin attractive to investors and it also made Bitcoin easier and safer to acquire for average people. I use a mobile bank and in my bank, I have an option to buy and hold ETFs. I can transfer my whole balance within seconds on my ETF account that's managed by my local bank and I can trade with ETFS instantly. After accepting Bitcoin ETFs, now I can do it in my bank. This way, I save lots of time, fees and most importantly I know that I'm secured because its managed by local and heavily regulated bank. I'm not afraid of hacks or anything similar because I'm protected. This is a huge benefit for the average person, it makes everything smooth and easy but it's only good for trading, I still prefer to hold my coins on my Bitcoin wallet.

[Don Pedro Dinero]

It did make it attractive to some type of investors.

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

It depends on the time period you are thinking about. I think a x10 is perfectly possible within a maximum of eight years. A x100 is more difficult, but if we are talking about 25 or 30 years ahead, I don't rule it out either.

Where does that leave us (small investors)?

This is like with sport, if you start with the gym you shouldn't compare yourself with Mr. Olympia, you have to compare yourself with yourself, how you are progressing. With bitcoin if you do DCA or if you already have a good amount and you do HODL you will do much better in the future than if you didn't do it.

[Ruttoshi]

With the current price of bitcoin, I don't see much impact which the ETFs added on bitcoin price. It's only if at the end of the bull market bitcoin new ATH is above $200k, I can boldly say that there was a major impact. The reason is because before the approval and lunch of bitcoin ETFs, the speculation was already there that bitcoin will hit 100k. We have only seen a $109k price which isn't that above $100k.

Based on the volatility, it will still continue to be volatile and it wouldn't reduce at this point of time but in the future just like what Don Pedro Dinero said, maybe, 30 years from now. This is because bitcoin is still in her early stage and is still growing. Only few people in the world has bitcoin compared to the world population.

[peter0425]

I don't see any harm in small/retail investors. You can still buy any amount of Bitcoin, you can own Bitcoin in your personal wallet. You can still use Bitcoin in any transaction you want.

I think that OP is more concerned about the selling part. For when we get profit. Obviously with less volatility comes less profit for small investors. If we only invest a small amount of money, we are gonna need huge price swings to really make a significant profit. Otherwise, we would only be benefitting from a few extra dollars which would be then eaten by transaction fees.

So for me, ETFs have both good and bad advantage of effects on Bitcoin.

Bitcoin being more recognized globally. Good.

More institutions or companies holding more and more of bitcoin. Bad.

Bitcoin being legal. Good.

Investors buying bitcoins through ETF instead of buying it on their own. Bad.

[SigCrypto]

ETFs made Bitcoin attractive to investors and it also made Bitcoin easier and safer to acquire for average people. I use a mobile bank and in my bank, I have an option to buy and hold ETFs. I can transfer my whole balance within seconds on my ETF account that's managed by my local bank and I can trade with ETFS instantly. After accepting Bitcoin ETFs, now I can do it in my bank. This way, I save lots of time, fees and most importantly I know that I'm secured because its managed by local and heavily regulated bank. I'm not afraid of hacks or anything similar because I'm protected. This is a huge benefit for the average person, it makes everything smooth and easy but it's only good for trading, I still prefer to hold my coins on my Bitcoin wallet.

I totally agree bitcoin ETHs make things so much easier and safer for regular people like us. Being able to trade through a proper bank feels way more secure, especially if you're nervous about hacks or scams. it is awesome for quick trades, but like you, I still like keeping my long term bitcoin in my own private wallet so I am in charge. ETFs are a handy option but I think holding your own coins still has its spot!

[HeRetiK]

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

Risk / reward. As Bitcoin becomes more stable the gains may not be quite the same as, say, 10 years ago, but it also mitigates some of the risk that early investors took on. Doesn't mean it can't continue to perform greatly and play a role in your diversification strategy.

[arwin100]

According to this article:  Axios Crypto Newsletter

The approval of Bitcoin ETFs 15 months ago demonstrated that a lot of capital was waiting to hit buy on bitcoin as soon it got a regulated wrapper.

And last week was the best week all year for crypto ETFs.

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

Where does that leave us (small investors)?

This is just a good addition but actually Bitcoin is already attractive to lot of investors. We see already a lot of support that's why Bitcoin reach trillion in market cap even if there's no ETF approval happens.

But somehow we cannot erase the fact that this add certain convincing factor to other skeptical investor also institutional investor to participate especially that they see an ETF approval on Bitcoin. Although we don't know what's going to happen. But there's huge chance that Bitcoin will rise if many institutional investor would came in since remember that Bitcoin has limited supply and their buy orders would provably help to increase its price especially if they can influence more demands for Bitcoin.

[fikrett]

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

Risk / reward. As Bitcoin becomes more stable the gains may not be quite the same as, say, 10 years ago, but it also mitigates some of the risk that early investors took on. Doesn't mean it can't continue to perform greatly and play a role in your diversification strategy.

It's just that the results would need more time to appear, but that's it - other than that, BTC would still remain on top.

[Zigabel]

This has to be one of the reasons why it has always been advised not to see Bitcoin as a scheme with which you will get rich quick, expecting 10x or 100x on your investments in a short time will be insane, but if you are looking at a longer time frame to achieve that, I don't think the stability Bitcoin gets front ETF will really stand in the way of that because less volatility doesn't mean a stop of volatility.  Mind you the decentralised nature of Bitcoin doesn't allow its volatility to be completely determined by the regulations or stability ETF will bring to it, so it may only go at a slower pase but not going to Halt volatility.

ETF mostly helped investors gain more confidence in Bitcoin and also give them a reason to push in certain volumes of investments.  So as a small investor, rather than trying to see Bitcoin as another means to get rich, see it as a store of value, that way you don't get to bother so much about  what the big players who are looking for the slightest profit margin due to their capital are actually doing in the Bitcoin market as with time you are definitely going  to get reasonable value for your investment.

[serjent05]

For the title, ETF did make Bitcoin attractive to investors because with ETF there is a company or group of companies that is committed to transacting, and investing in the Bitcoin market.  This brings liquidity to the market.  In addition, this also ensures many investors who want assurance on their funds if a wrong thing happens.

But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

With the current price increase of Bitcoin, it depends on the time frame involved.  I say, we can't expect a huge increase in Bitcoin like 10x in just a short period of time but if we talk about a decade or two, then 10x is still highly possible but probably not the 100x increase at the current valuation of price.

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

It has been a playground for whales and institutions, the good thing is that even though many see it as a playground, they do not have the full control of it due to Bitcoin's decentralized nature.

Where does that leave us (small investors)?

I believe Bitcoin is still accessible to small investors or even independent small investors.  There are exchanges that offer trading pairs with Bitcoin may it be in fiat or another cryptocurrency.  I am not worried that small investors who are interested in investing in Bitcoin will be left behind because of these ETF companies because aside from these ETFs there are still independent cryptocurrency exchanges that individual investors can use to buy Bitcoin.  

[Lucius]

~snip~
But the question is: can we still expect huge price increases like 10x or even 100x.. like many early investors hoped for?

If spot BTC ETFs were approved in the US 15 months ago and the price then was 1 BTC = $45 000, and today it is twice that, what does that data tell you? Since then, these funds have accumulated 1+ million BTC and have undoubtedly influenced the price. Ask yourself if it is realistic to expect the price to reach x10, i.e. 1 BTC = $1 million?

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

Some still don't see reality the way it should be seen - hasn't that already happened? The aforementioned funds in the US + Microstratergy alone have over 1.5 million BTC in their possession - who knows how many more those who are not required to publicly disclose have.

Where does that leave us (small investors)?

If you bought BTC before 2017, it leaves you in a very good position because you preempted the big players in a game in which they usually have the first move - you bought cheap something that they pay dearly for today. Unfortunately, if you see BTC as just an investment (buy low, sell high), it will never be easy for you to accept some things.

[notocactus]

This means that as more and more institutional investors are getting into ETFs, it could possibly mean that Bitcoin will become more stable (less volatile).

I agree with this stance but there is at least another big factor, Bitcoin market cap. When Bitcoin market cap gets bigger, its volatility will naturally become smaller than what it was in previous market cycles when Bitcoin had significantly smaller market caps. It's natural with all assets, not only with Bitcoin.

You can not expect gold to have similar high ROI like Bitcoin had in past years because gold has bigger market cap.
https://companiesmarketcap.com/assets-by-market-cap/

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

Stock market is a traditional market with older history than Bitcoin market and it is full of institutional investors. What's happening in stock market nowadays in 2025?

It has both institutional investors and small (retail) investors and if you have small capital, but you are knowledgeable and intelligent enough to follow whales' traces in the market and their set-up games, you can get very good profit, even better than whales.

Small investors have big advantage with small capital, they can more easily enter and exit the market and they can do it very quickly. Whales with big capital have to enter and exit the market during a long time and they do it in long lasting accumulation and distribution phases.

Where does that leave us (small investors)?

As I said above, chance for small investors will still exist and if they can invest with a good strategy, they can get good profit even Bitcoin volatility will shrink more over time.

[Ziskinberg]

As I said above, chance for small investors will still exist and if they can invest with a good strategy, they can get good profit even Bitcoin volatility will shrink more over time.

There’s still good profit, but probably not as good as before.
It’s different now compared to when Bitcoin was valued at just $100, we were optimistic it could reach $1,000.

But today, if Bitcoin hits $100K again, can we still realistically hope for $1 million? I doubt it. The room for growth now is much smaller than it was in the past. However, if you’re happy with a 10x return and you’re willing to hold long-term, then Bitcoin still has potential.

[Darker45]

Yes, Bitcoin ETFs really made Bitcoin attractive to investors especially to the traditional ones. But even those who aren't traditional, those who were already exposed to Bitcoin, they must have also been ecstatic that Bitcoin ETFs were finally approved. Many of them must have increased their Bitcoin exposure a lot after the ETFs were approved. I'm sure they knew that SEC's nod on Bitcoin speaks volumes. I'm talking specifically of spot Bitcoin ETFs in the US, of course.

Prior to their approval, I've read that billions were waiting for the spot ETFs to finally hit the market. It was probably true. Indeed, the price increased. Although it seemed there were those who sold the news, what followed right after was an aggressive surge in the price.

But I don't see why stability should be tied with institutional investors. So far, the level of volatility hasn't subsided after the spot ETFs were approved.

Also, the higher the price of Bitcoin is, the harder it will be to multiply. That's perhaps common sense. When Bitcoin was worth a dollar, x5 was easy. It could happen in a day. But when Bitcoin is already worth $100,000, even x2 must be hard. That's why it's a big deal when you entered the market. If you entered late, expect that your gains would also be lower than those who joined the market early.

[melinoe]

As I said above, chance for small investors will still exist and if they can invest with a good strategy, they can get good profit even Bitcoin volatility will shrink more over time.

There’s still good profit, but probably not as good as before.
It’s different now compared to when Bitcoin was valued at just $100, we were optimistic it could reach $1,000.

But today, if Bitcoin hits $100K again, can we still realistically hope for $1 million? I doubt it. The room for growth now is much smaller than it was in the past. However, if you’re happy with a 10x return and you’re willing to hold long-term, then Bitcoin still has potential.

It will happen, but much slower than what we've seen in the past or even now.

That's my opinion, of course.

[MArsland]

If that's no longer possible, then Bitcoin might just become a playground for institutional investors.

Where does that leave us (small investors)?

In general ETF are a bridge for large investors who were initially interested in investing in bitcoin but did not want the risk of holding it.  ETF offer the option to become a second-party bank for investors, this is a way and a sense of trust in bitcoin is increasing because it is adopted by institutions. The impact on retailers like us is of course that after the presence of large investors in ETF, we are required to hold bitcoin more tightly, buy more and not let it all go. Because once you release Bitcoin on the market, it means you are handing over final ownership to those who are more hungry for bitcoin.