The latest spike in Bitcoin’s price, reaching $30,240, is being attributed to a new wave of euphoria surrounding the approval of a spot exchange-traded fund (ETF). Several well-known investing firms have submitted applications for Bitcoin spot ETFs with the US Securities Exchange Commission (SEC), including Fidelity, Invesco, Wisdom Tree, and Valkyrie. This phenomenon has sparked “The Great Accumulation Race,” according to analysts. Institutional and individual investors are competing for a piece of the finite quantity of Bitcoin.
Cameron Winklevoss, the co-founder of Gemini, believes institutional and retail investors are accumulating Bitcoin. His opinion suggests a growing interest in cryptocurrency from both sectors. He compared the current scenario to a pre-IPO buy. He also said that individual investors’ window of opportunity for “front-run” institutional demand was soon closing.
The opportunity to predict demand for Bitcoin according to MicroStrategy Executive Chairman Michael Saylor, is narrowing. As institutional interest continues to rise, the possibility of soon marginalizing retail investors emerges.
Anthony Pompliano, an investor, stressed the upcoming conflict between Wall Street and small-time investors. Retail investors have amassed a large percentage of the current supply. He emphasized that the introduction of institutional players could result in increased illiquidity.
The recent ETF registrations, according to Bitcoin analyst Dylan LeClair, have made the price of Bitcoin more “extremely inelastic” than before. These registrations are causing significant market inflows by acting as a catalyst. LeClair forecasted that the SEC would not accept any ETF applications until January or February 2024, at the very last.
Participants in the market are constantly between institutional demand and retail demand as the anticipation for certified Bitcoin ETFs builds. The likelihood of ETFs joining the market has sparked a rush to buy Bitcoin, pushing its price up. The future of liquidity and the balance between retail and institutional participation continues to attract interest from investors and industry watchers alike.