Topic: The impact of Bitcoin ETF on Bitcoin and the cryptocurrency market! - page 2. (Read 313 times)

I remember a few days ago bitcoin rose to 73k5$ but very quickly it dropped below 66k$ and that is not the first time bitcoin has had strong fluctuations since the ETF was approved. I don't see any changes that suggest bitcoin is becoming more stable like we once thought. Bitcoin is still the same, still volatile and even more volatile since the adoption of ETFs. Furthermore, bitcoin's volatility creates an opportunity for us to make profits, why do people prefer it to be more stable?

We all want to make huge profits from bitcoin but are afraid of its risks and volatility. Is that unreasonable and are we too greedy? Everything is proportional to each other, high profits come with high risks, so if anyone feels afraid of bitcoin's fluctuations, it is best not to participate in bitcoin.

You have mentioned the positive impact of Bitcoin ETFs, but there are also many negative impacts, namely :

The bitcoins that are bought for these Bitcoin ETFs are locked into a centralized database and it is taken out of circulation.

Bitcoin's future are determined by the miners fees that are generated by on-chain transaction and these coins stay in these cetralized databases and they generate zero miners fees.

Huge amounts of coins are also owned by centralized financial institutions and less people can buy those coins and the remaining coins become very expensive. (The idea was to spread adoption to millions of people and not just a few super rich companies)

This is true. Now bitcoin can be traditional just the way shares and bonds are. Big investors will put money into it. When something is accepted by big investors, it helps adoption. So now it may no longer be "that bubble" or scam to people. And the government will begin to be less strict towards it. This confirms your 3rd point that the popularity and acceptance of Bitcoin would increase.


But this, I do not agree with. I don't believe ETF would make Bitcoin less volatile. The market is still controlled by the market forces of demand and supply, so it still leaves a lot of room for volatility. Other traditional investments like gold, stock, and Forex are still volatile in their own way, so why do you think Bitcoin would be different? 

5. Making a mockery of the original intent of Bitcoin and the blockchain architecture generally.

By definition the ETF is absolutely centralized, meaning that investors are investing in absolutely nothing but the name, "Bitcoin" when they buy shares of the ETF.

The ETF underscores that very, very few people have a need to ensure their government cannot subpoena their transactions, and most people do not want to hold a large portion of their wealth on their own person, but would rather pay somebody to guard it for them e.g. a bank of financial institution.

In a sense the ETF represents the "grown up" view of Bitcoin--but it makes the original concept of Bitcoin look like a toy.

This is true.

We are witnessing massive new capital in Bitcoin market since approvals of Bitcoin Spot ETFs in January 2024.

Bitcoin Spot ETF Tracker

It is a theory now and data in last one year, months before Bitcoin Spot ETF approvals because people were FOMO and speculated that with participation of BlackRock, probability of approval is very high.

We must need more time to be sure about things like better stability, less volatility but my warning is you must look at high volatility times in stock market, bank stocks and gold, oil markets to see that even in traditional markets, there are times for massive high volatility.

Hence, I really don't exclude any chance in future that Bitcoin will have big corrections.

Bitcoin price history, ATHs and bottoms.

This is good as far as the price is concerned. The demand is there. However, on the other hand, these traditional investors don't believe in the main purpose of Bitcoin. BlackRock's Larry Fink himself doesn't believe that Bitcoin is a currency. These players don't believe in the essence of Bitcoin. They don't see Bitcoin as money. In this regard, I don't think they're one of us.


Not true. You must have noticed how the price has been fluctuating wildly ever since the spot ETF was approved.  

I agree. But, again, the question would be, how is Bitcoin popular? How is it accepted? If Bitcoin's popularity and acceptance are solely grounded on its being a new asset class, then that would be questionable. If this kind of popularity and acceptance flatly reject its being a legitimate money, then it might even be detrimental.


Forget about the crypto field. It's heavily flooded with scams. Scam projects, those that are freely riding the waves of Bitcoin's popularity, indeed create jobs, but it's not worth it. The negative effects of these scams far surpass job creation. I would wish that these jobs won't be created if it means there will be scam victims all over the world.

The recent approval of Bitcoin ETFs has opened a new turning point for Bitcoin as well as the cryptocurrency market. It brings extremely positive impacts to the development of this market in the future. Let me list what those impacts include!

1. Attracting traditional investors
The EFT Bitcoin Fund is like a certificate proving the legitimacy of this market. It helps traditional investors alleviate concerns about the legitimacy of this market. They boldly pour capital into this market through ETF funds, and this is not a small and extremely stable source of capital for the market. It will create a good premise for countries that previously banned or did not support Bitcoin to become more open in the near future.

2. The market will gradually stabilize and grow more sustainably
Before there were ETFs, the cryptocurrency market was considered an extremely volatile market, sometimes fluctuating up to several dozen to several hundred percent. This not only causes confusion for participants, but also creates extremely risky psychology for those who want to learn about this market. But when ETFs come into play, they can help mitigate this wild and volatile volatility. ETFs will provide diversification, and they are also the ones who will regulate the market, making the market more stable, reducing risks for investors.

3. Bitcoin's popularity and acceptance soars
This is quite obvious when the major US ETFs were approved, which brought huge worldwide attention to Bitcoin. From there, they will learn what Bitcoin is, and help promote Bitcoin to a larger number of users by chance. Besides, they will understand what it is like to use Bitcoin in daily life as well as in other fields besides the financial market, who in the past they only viewed Bitcoin as a speculative product, and only for fraudulent purposes.

4. Create more jobs related to the crypto field
The appearance of ETF funds will lead to a strong wave of investment capital flowing into the market to develop projects. The cryptocurrency market goes hand in hand with technological development, so attracting capital inflows is very easy. That opens up more space and economic potential for projects to develop, meaning they will have to expand their company scale and human resources. The labor market in the information technology industry as well as crypto has been very hot in recent years. And I firmly believe that the recruitment demand in this crypto industry will increase with the development of the market.

In short, the launch of Bitcoin ETFs I think brings a lot of positive things and opportunities to many people. This can be considered a period of transferring humanity's wealth, opening a new era for all of us. Let's find out and seize this opportunity!