The highly anticipated introduction of bitcoin spot exchange-traded funds (ETFs) in the United States this year has failed to generate the anticipated surge in cryptocurrency prices. The optimism surrounding the launch, driven by expectations that a new, easy-to-access investment avenue for regular investors would boost demand, has left many questioning whether the market fell victim to the age-old adage of “Buy the rumor, sell the news.
Despite Bitcoin’s value nearly doubling over the past year, reaching approximately $43,000, recent weeks have seen the cryptocurrency largely trading sideways. This unexpected outcome has prompted a closer examination of the impact of the spot ETFs on the crypto market.
TechCrunch conducted an informal survey among its readers, delving into their intentions regarding the purchase of bitcoin through the newly introduced spot ETFs, their existing bitcoin holdings, and their expectations regarding the effect of these investment vehicles on cryptocurrency values.
Results from the survey revealed some intriguing trends. Approximately a quarter of respondents indicated they had no plans to acquire bitcoin through an ETF, citing existing ownership of the cryptocurrency elsewhere. The survey also uncovered the diverse locations where respondents stored their digital assets, ranging from self-custody to popular platforms like Coinbase and KuCoin.
Notably, some respondents shared unconventional stories related to their bitcoin holdings. Dara Khan, the head of marketing at Decent DAO, humorously recounted a unique tale of losing her wallet in a “boating accident,” resulting in it ending up at the “bottom of the ocean.”
While the initial response to the bitcoin spot ETFs has been mixed, market observers and investors alike continue to monitor the situation closely, seeking clarity on whether these investment vehicles will eventually lead to the much-anticipated surge in crypto prices or if other factors are at play. As the crypto landscape evolves, the debate over the impact of spot ETFs on bitcoin’s value remains ongoing.