Good timing often helps some new exchange traded funds. And that was expected to be the case for the 10 recently launched spot bitcoin ETFs, including the Invesco Galaxy Bitcoin ETF (BTCO).
BTCO and friends were expected to be beneficiaries of pent-up demand. The reality is the debut of spot bitcoin ETFs proved to be a “buy the rumor, sell the news” event. As highlighted by a strong showing Monday, the selling appears to be ebbing. And with Monday’s rally, the digital currency is now in the green on a year-to-date basis.
Obviously, that’s constructive for ETFs such as BTCO. But the good news for investors is that, well, there’s more good news.
Stars Could Align for BTCO, Bitcoin Rally
Multiple factors indicate BTCO and the digital currency could be in for some near-term upside. For example, JPMorgan said in a new report that selling pressure on bitcoin caused by the conversion of one of BTCO’s rivals to an ETF from the index fund structure appears to be abating. That’s pertinent because that selling was in the billions of dollars.
Data indicates that outflows from the BTCO rival waned last week. That might be one reason the digital currency started this week on a strong note. Additionally, The Daily Hodl reports that the cryptocurrency whales have accumulated $3 billion worth of the largest cryptocurrency this month.
“Whales’ include any entity, individual or fund (including the ETFs) holding over 1,000 BTC. While Bitcoin ETFs have seen net inflows of $820 million, Bitcoin whales have seen an increase of ~$3 billion (76,000 BTC) so far in 2024. Including GBTC, Bitcoin ETFs now hold 3.23% of Bitcoin’s circulating supply,” according to the publication.
In other words, ETFs such as BTCO are having the desired effects of acting as new buyers of bitcoin while removing supply from the market. The April halving of bitcoin could act as another significant catalyst for the digital currency and funds such as BTCO.
On a recent edition of the Scott Melker podcast, Skybridge Capital Founder and Managing Partner Anthony Scaramucci said in the 18 months post-halving, bitcoin could quadruple in price. So if it trades at $40,000 on the day of halving, it could reach $160,000 or more by late 2025.
He added that his long-term forecast for the digital currency is that its market capitalization will eventually reach half that of gold. That implies a run to $400,000.
For more news, information, and analysis, visit the Crypto Channel.