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5 lessons that Bitcoin ETFs leave us

The approval of Bitcoin (BTC) ETFs in the United States on January 10, 2024, almost a month ago, marked a historic milestone in the digital asset industry.

Although the event was received with great expectations, The subsequent reactions and developments have left several valuable lessons for investors, enthusiasts and market watchers. Here we examine five key lessons that emerge from this event.

The institutional investor is not moved by FOMO

The CriptoNoticias glossary explains that FOMO (an acronym in English for “fear of being left out”) “describes a state of mind among cryptocurrency investors when the price of one of them rises.” “Investors buy out of fear of missing out on potential profits.”

However, contrary to what many expected, The approval of Bitcoin ETFs did not trigger a buying frenzy driven by fear of missing out with institutional investors.

Although ETFs have seen sustained growth and the price of BTC has increased since their approval, we have not seen a “super”. Bull run» expected by many analysts.

This behavior underscores a fundamental truth about institutional investors: Their approach is more measured and based on thorough analysis rather than impulsive moves. This caution reflects the maturity of the cryptocurrency market, where strategy is more important than momentary enthusiasm.

For example, this information portal announced that large investment funds such as LPL will need a few months to study all Bitcoin ETFs approved in the USA (there are 11 in total) and determine which one they will invest in.

Amrita Nandakumar, president of investment company Vident Asset Management, also said:

“While the attention and ink devoted to Bitcoin spot ETFs is unlike anything we have seen in the ETF world, the truth is that they are ETFs like any other and will face the same headwinds like all other newly launched ETFs in this crowded and mature market.” . “If these funds fail to raise significant assets in a reasonable period of time, it should come as no surprise that some will eventually close.”

Amrita Nandakumar, President of Vident Asset Management.

You have to be careful with “predictions”.

Commenting is free and free. Anyone can create an account on X or start a YouTube channel and say what price Bitcoin will reach tomorrow. But that doesn't mean the prediction is true. Considering that it's impossible – at least for now – to travel through time, Every prediction is more likely to be wrong than right..

An opinion should be just that: an opinion. Without giving it more value than what an opinion may have.

The post-ETF reality reminds us how important it is Approach market forecasts with healthy skepticism. Before the approval, there was a lot of speculation about the immediate and massive impact on the Bitcoin price. However, as shown in the graphic below, the reality was more complex and less dramatic.

Bitcoin price since ETFs were approved in the USA. Spring: TradingView.

This scenario reinforces the need Conduct independent investigations and don't get carried away by sensationalism.

Organic growth is perceived, which could skyrocket after the halving

Although the immediate impact of ETFs has not been as explosive as some expected, there are signs of sustained organic growth in Bitcoin adoption and investment. This growth could accelerate after the next one halving of Bitcoin, planned for April or May 2024.

In the past, halvings have had a significant impact on the price of BTC by reducing the number of digital currencies issued and reminding the market that it is a scarce commodity.

This event could once again be the catalyst that leads to a higher valuation driven by both increasing scarcity and renewed interest in Bitcoin.

The analyst known as Rekt Capital has pointed out the phases usually seen in Bitcoin price before halving. Only in the final phase (which occurs a few months after each halving) does strong demand lead to accelerated growth in the Bitcoin price. At this time, new all-time high prices were always reached.

Bitcoin is here to stay and triumphs over governments

The SEC's approval of Bitcoin ETFs symbolizes a significant victory for Bitcoin over regulators who have been skeptical or downright hostile towards these financial products (and anything related to Bitcoin or cryptocurrencies) for years.

This success not only confirms that Bitcoin is a legitimate financial asset in the eyes of one of the most influential financial institutions in the world, but also demonstrates the resilience and adaptability of BTC and its community.

Over the years, Bitcoin has faced and emerged stronger from numerous regulatory challenges, reinforcing its position as a disruptive financial innovation.

With or without an ETF, Bitcoin is still Bitcoin

The immutable nature of Bitcoin, even in the face of the emergence of ETFs, reflects one of the fundamental truths about Satoshi Nakamoto's creation: Its intrinsic value and innovation do not come from institutional acceptance or integration into the traditional financial systembut by its unique characteristics and the philosophy that supports it.

Even if spot ETFs had not been approved in the United States, Bitcoin would still be a decentralized, secure, peer-to-peer e-cash system without the need for intermediaries.

This chapter in Bitcoin's history is not just a regulatory milestone or a new financial product; It is a moment of reflection on how disruptive innovations can challenge and ultimately integrate established systems, transforming them from within.

So as we celebrate the arrival of Bitcoin ETFs on the world's largest stock market, we must also remember this The true essence of Bitcoin remains unchangedthereby challenging preconceived notions about what money means every day.

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