Bitcoin ETFs: Are They Sell-The-News Events?
• Europe launched the first spot Bitcoin ETF on Tuesday, but the cryptocurrency’s price plummeted in the following days to multi-month lows.
• This led to speculations on whether these products are actually benefiting the crypto industry.
• The launch of BCOIN, with its “verifiable built-in Renewable Energy Certificate (REC) solution” has yet to have a positive impact on BTC’s price.
Europe’s First Spot Bitcoin ETF
Europe recently saw the launch of its first spot Bitcoin ETF, known as BCOIN. It was listed on Euronext Amsterdam and is backed by Jacobi Asset Management and Wilshire Indexes. This product contains a “verifiable built-in Renewable Energy Certificate (REC) solution which allows institutional investors to access the benefits of Bitcoin whilst also meeting ESG goals.”
Are Bitcoin ETFs Beneficial?
Despite hopes that this would be a highly bullish development for the entire industry, BTC’s price performance has been quite underwhelming following its launch, leading many to question whether these products are actually beneficial for the crypto industry or not.
Similar Results After US Launch
Interestingly, something similar happened back in 2021 when US approved futures Bitcoin ETFs in 2021 – another sell-the-news moment occurred after their launch.
Imagining a US Spot BTC ETF
If this theory is true, it raises questions over what could happen if the US ever greenlights a spot BTC ETF – would it too cause an unexpected drop in price?
Only time will tell how successful BCOIN will be and what further impacts it will have on BTC’s prices and market sentiment.