“Bitcoin would have reached an all-time high even without ETFs”

As is known, bitcoin has reached a new all-time high of $69,210, just two months after the approval and launch of ten spot bitcoin ETFs (Exchange-Traded Funds). That marks an increase of about 60% over that period.

Snelle all-time high

This rapid achievement of a new high has raised questions about whether this high can be reached without the launch of the ETFs. According to Seth Ginns of CoinFund, a record price was possible without the ETFs, but the ETFs likely accelerated this process. Grayscale’s GBTC has quickly absorbed more than 200,000 bitcoins since the launch of the ETFs. The spot funds have collectively accumulated around 163,000 tokens, with BlackRock’s IBIT and Fidelity’s FBTC holding more than 196,000 bitcoins between them.

Jim Iuorio, of TJM Institutional Services, sees the introduction of the ETFs as a significant boost. He believes the recent rally has not been driven solely by ETFs, but also by the current political landscape. Including expectations that the US Federal Reserve will cut interest rates and the end of the Bank Term Funding Program. This program was set up by the Fed to prevent a banking crisis from occurring in 2023. Iuorio interprets the increased interest in crypto as a sign of lack of confidence in the management of fiat currencies.

ETF’s

Interest in bitcoin has increased significantly since January when the ETFs launched, and is set to nearly triple in price by 2023 following announcements from BlackRock and a successful lawsuit from Grayscale against the SEC’s rejection of its hopes for a spot ETF. Nate Geraci of the ETF Store emphasizes that ETFs play an important role by providing the convenience of ETF packaging, unlocking a significant new source of demand from retail investors, advisors and institutional investors who previously did not want to purchase bitcoin directly from crypto exchanges.