Inspired by BlackRock, Fidelity, Invesco, and WisdomTree applied in recent days to launch their own Bitcoin Exchange-Traded funds, prompting experts to whisper of a “Great Accumulation.”
Valkyrie Investments, which received approval for a Bitcoin futures ETF in 2021, has also lodged an application for a spot ETF. Let’s examine the current state of the crypto market.
What is Happening in the cryptocurrency market?
Bitcoin (BTC) has been on a tear, gaining 15% in the last week alone, the highest of the top 10 cryptocurrencies by market capitalization. Solana came in second with more than 9% growth, followed by Ethereum’s 8%.
On-chain metrics paint an interesting picture, showing that Bitcoin addresses holding between 100 and 1000 BTC buy about 36% of all new Bitcoin created within 24 hours. Bitcoin’s software issues a reward of 6.25 BTC for every successfully mined block.
Since a new block is mined roughly every 10 minutes, the mining algorithm releases about 900 coins every day, on average. Large holders buy about 36% of this daily quota.
Conversely, so-called whales (addresses holding a minimum of 1,000 BTC) behave differently, selling about 70% of all coins mined daily as the assets of large investors flow to smaller ones.
Excitement Builds for Valkyrie Application
Sources said that Valkyrie’s Bitcoin Fund would hold cryptocurrency referenced to the CME’s CF Bitcoin rate instead of cryptocurrency futures. If the US Securities and Exchange Commission (SEC) approves Valkyrie’s application, the company will list the Bitcoin exchange-traded fund on the Nasdaq under the ticker BRRR.
The SEC approved the Valkyrie Bitcoin Strategy ETF based on Bitcoin futures in October 2021. Three months later, the firm launched another investment instrument tracking the shares of publicly-listed Bitcoin mining companies.
The enthusiasm surrounding Valkyrie’s new application can be attributed to the SEC never refusing BlackRock’s previous ETF applications. The firm is the largest investment company in the world in terms of assets under management.
Accordingly, many saw BlackRock’s application as mainstream finance’s acceptance of Bitcoin. Crypto enthusiasts attribute Bitcoin’s growth above $30,000 to the ETFs.
Winklevoss Says ETF Applications signal the start of “Great accumulation.”
The growing interest in building infrastructure for capital investments in Bitcoin may also signal the start of Bitcoin’s great accumulation.
Cameron Winklevoss, co-founder of the Gemini crypto exchange, confirmed that Bitcoin is in the early stages of a bull market. Digital asset fans can expect exciting times.
Winklevoss argued in a recent tweet that it’s not too late to buy BTC.
“The Great Accumulation of bitcoin has begun. Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast.
If Bitcoin was the most obvious and best investment of the previous decade, this will likely be the most obvious and best trade of this decade.”
What Does Michael Saylor Think?
Former MicroStrategy boss Michael Saylor recently supported the idea of an imminent bull market.
“The window to front-run institutional demand for Bitcoin is closing.”
However, MicroStrategy’s choice of Bitcoin as its only cryptocurrency investment and Saylor’s vested interest in its growth suggest his comments should be approached cautiously. The billionaire previously made far-fetched claims about the asset.
MicroStrategy has regularly added BTC to its balance sheet since 2020. The recent price increases caused the company’s investments to break even. The firm bought 140,000 BTC at an average price of $29,903 per coin.
It seems like major Bitcoin investors can influence smaller ones to act. As on-chain analyst Nansen noted, bull market expectations will hinge on regulatory certainty around digital assets in the US.
