The Bitcoin ETF craze

The cryptocurrency industry is witnessing an impressive move: more than 68,500 BTC have been invested in various Bitcoin ETFs, such as Blackrock (iShares), Grayscale and Fidelity, and others. This amount represents 77 days' worth of mining rewards, an accumulation that is taking place at around fifteen times the normal rate. Despite these impressive figures, these 68,500 BTC make up just 0.32% of the total supply of 21 millions BTC, still a very small percentage when compared to all bitcoins in circulation, and even less significant when lost bitcoins are taken into account.

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*BlackRock now holds 25,076 BTC worth over $1 billion in its Bitcoin ETF*

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Assets under management in Bitcoin spot ETFs have surpassed those in Silver ETFs in the US. The simple conversion of Grayscale's GBTC into an ETF was enough to surpass the $11.5 billion invested in Silver ETFs.

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*https://twitter.com/BTC_Archive/status/1748046755285934364*

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Potential for the next bull run

This increased investment trend in Bitcoin ETFs points to a potential bull run on the horizon, triggered by an interesting combination of factors. Halving (the halving of rewards for miners), a reduction in OTC (over the counter) purchases and the possible fall in US interest rates (interest rates are projected to fall to 3% during 2025) could create significant buying pressure on Bitcoin. Such a scenario would encourage a massive influx of capital into cryptocurrencies, particularly bitcoin, suggesting a bull market ahead.

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"Not your keys, not your coins"

The most intriguing aspect of this rise in Bitcoin ETFs is the question of ownership. The investors who buy these ETFs do not directly own the bitcoins, but hold rights over them. This raises an important question about the true ownership of cryptocurrencies. The history of platforms such as MtGox or FTX is a reminder of the crucial importance of holding your own privates keys, highlighting the risks associated with not owning them directly.

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An unprecedented phenomenon of attraction

The popularity of Bitcoin ETFs is remarkable. These products have attracted $10 billion in volume in just three days, surpassing the combined volume of $450 millions generated by 500 ETFs launched in 2023. This performance dwarfs that of many other ETFs, highlighting the difficulty of achieving significant volume in the market. This demonstrates the robustness and popularity of Bitcoin ETFs, which naturally seem to attract significant market volume, unlike other financial products.

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Stable bitcoin price despite the hype

Despite the growing interest in Bitcoin ETFs, the price of Bitcoin has remained stable. This stability, even in the face of a potential short-term decline, does not call into question Bitcoin's promising future. Its growing recognition, the entry of the largest investment funds and their marketing campaigns which promote Bitcoin, reinforce its attractiveness and long-term potential.

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