Saltık 
The approval of Bitcoin ETFs offered investors a comforting sign beyond the first publicly available Bitcoin-based products.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has legitimized the cryptocurrency industry in the eyes of investors. The approval of the first US spot Bitcoin ETFs in January resulted in the launch of the first regulated, publicly traded Bitcoin-based investment vehicles.
According to Sheraz Ahmed, managing partner of Storm Partners, the launch of Bitcoin ETFs has brought about a significant shift in the mindset of investors. Ahmed says:
“The impact of Bitcoin ETFs comes from what they mean, rather than what they are. We’ve seen an incredible shift in mindset over the last few months.”
According to Dune data, US spot Bitcoin ETFs have accumulated a total of $57.7 billion worth of Bitcoin.
Bitcoin ETFs have been a significant step towards legitimizing the crypto industry, especially in the eyes of mainstream investors. However, according to Ahmed, it is not the publicly traded products themselves but the regulatory approval given to them that gives investors greater confidence. Ahmed says:
“When I look into people’s eyes, I see that they can finally relax. This industry will not disappear tomorrow. For an entrepreneur, this provides the security of eight hours of sleep.”
Last week on June 10, US Bitcoin ETFs paused after 20 days of net positive inflows. Bitcoin ETFs recorded four consecutive days of net outflows, with net outflows of over $152.4 million on June 18, according to data from Farside Investors.
Bitcoin price started to decline from above $70,000 on June 7. Funds from ETFs fell to $64,032 on June 18, reaching the lowest level in more than a month and finding current support, according to Bitstamp data.
ETF inflows were a key part of Bitcoin’s 2024 price rally. By February 15, Bitcoin ETFs had accounted for approximately 75% of new investment in the world’s largest cryptocurrency, as Bitcoin surpassed the $50,000 level.
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