Bitcoin ETFs legitimized the crypto industry for investors — Storm Partners

Zoltan Vardai4 hours agoBitcoin ETFs legitimized the crypto industry for investors — Storm PartnersThe approval of the Bitcoin ETFs has offered investors a welcome sign of relief beyond the first publicly traded Bitcoin-based products.820 Total views3 Total sharesListen to article 0:00InterviewOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe approval of United States spot Bitcoin exchange-traded funds (ETFs) has legitimized the cryptocurrency industry in the eyes of investors.

The approval of the first U.S.-based spot Bitcoin ETFs in January has resulted in the launch of the first regulated, publicly traded Bitcoin (BTC)-based investment vehicles.

Moreover, the launch of the Bitcoin ETFs has provided a significant shift in investor mentality, according to Sheraz Ahmed, the managing partner of Storm Partners, who said:“I do believe the [Bitcoin] ETF, not from what it is, but from what it means, has had a large effect. And over the past couple of months, we’ve seen an incredible change in mentality.”

The U.S. spot Bitcoin ETFs have amassed over $57.7 billion worth of Bitcoin in total onchain holdings, according to Dune data.Bitcoin ETF flows. Source: Dune

Related:Kraken says it"s being extorted following bug bounty reportIt’s not the Bitcoin ETFs themselves, but the regulatory nod

Bitcoin ETFs have been a significant step toward legitimatizing the crypto industry, especially in the eyes of the mainstream.

However, it’s not the publicly traded products themselves but the underlying regulatory nod that is offering crypto investors more peace of mind, according to Ahmed:“When I look into people’s eyes, I see that they can finally breathe. This industry is not going away tomorrow. And that reassurance for an entrepreneur is like eight hours of sleep.”Sheraz Ahmed, managing partner of Storm Partners at Decentral House. Source: Storm Partners

Related:Ethereum price to $10K is the most ‘asymmetric bet’ in crypto — AnalystBitcoin ETF inflows take a breather along with the BTC price

On June 10, the U.S. Bitcoin ETFs broke a streak of 20 consecutive days of net positive inflows.

The Bitcoin ETFs have since amassed four days of consecutive net outflows, with over $152.4 million worth of cumulative net outflows on June 18, according to Farside Investors data.Bitcoin ETF flows. Source: Farside Investors

Bitcoin price started falling from above the $70,000 mark on June 7. The outflows from the ETFs saw it correct to an over one-month low of $64,032 on June 18, where it found its current support, according to Bitstamp data.BTC/USD, 1-day chart. Source: TradingView

ETF inflows were a significant price of Bitcoin’s 2024 price rally. By Feb. 15, Bitcoin ETFs had accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.

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