The Impact of Adoption
To date, Bitcoin ETFs have over $40 billion in assets, and there has been impressive growth in new money coming into these funds.
I wrote about Bitcoin at the beginning of the year after the launch of the Bitcoin ETFs.
I titled that post “It’s What Could Propel Growth”, connecting the event to the launch of ChatGPT and the aftermath that caused an increase in appetite for risk assets, with Bitcoin being the ultimate risk asset.
To date, Bitcoin ETFs have over $40 billion in assets, and there has been impressive growth in new money coming into these funds. Bitcoin also hit $65,000 for the first time in over 2 years and is now inches away from hitting a new all-time high, which also impacts the assets under management number.
Bitcoin was already rising quickly before the launch of these ETFs, but a vehicle for new money to come in through institutional channels should introduce different market dynamics to this ‘wild west’ market. And I think that is what we have seen in the last 8 weeks.
Now, I will make the same point I made before. Bitcoin is a risk asset and is entirely speculation; however, if there is an extreme amount of interest in riskier assets, then that usually means some amount of money will flow into other risk asset categories, especially when they are delivering strong fundamentals.
Year to date, the Nasdaq Composite and S&P 500 are both up around 8%, which is impressive given we are only 9 weeks into 2024. And stocks while they aren’t as risky as Bitcoin are risk assets.
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