Bitcoin’s price has basically been on pause since mid-June, as the asset trades range-bound since then. The exchange rate of BTC to USD remained above $29,000, with resistance at $30,000. It’s as if markets are waiting on the SEC’s spot Bitcoin ETF approvals.
In fact, one metric of bitcoin’s price stability touched five-year historic lows at the beginning of August. Weirdly, BTC was even less volatile than U.S. stocks briefly this month.
But with each new application for a spot Bitcoin ETF, there’s more bullish pressure on BTC’s chart. Institutional investors are wetting their whistle for blockchain exposure via an ETF product they can understand, with a Tradfi partner they can trust.
The list of spot ETF applications for Bitcoin is long and growing. When the first approval comes, market watchers are expecting a big upswing in exchange prices.
US Dominates World Crypto ETF Volumes
Bloomberg senior ETF analyst Eric Balchunas recently pointed out in a (Twitter) X post that “Every single one of the Top 15 best-performing equity ETFs this year is crypto-related.” Furthermore, Balchunas added that a spot Bitcoin ETF would send North American crypto ETF volumes to 99.5% of the global market.
Every single one of the Top 15 best performing equity ETFs this year is crypto-related. $WGMI leading way w +227%. Finally attracting flows too, altho pretty modest considering these perf numbers. This is part of our monthly Crypto ETF Report via @JSeyff & @SirYappityyapp pic.twitter.com/iPIHhH82Jr
— Eric Balchunas (@EricBalchunas) August 10, 2023
The real stunner is that, in the first place, that figure is already 97.67%.
ETFs are a preferred way to get blockchain exposure for institutional and Tradfi players. This shows how far ahead of European Tradfi companies and baby boomers US investors are at taking the disruptions of the cryptocurrency industry seriously.
US Tradfi Players Far More Open to Blockchain
The differences in US versus European openness to blockchain and cryptocurrencies are shocking by this metric. Sophisticated European investors are nearly entirely passing on crypto ETFs despite some of the face-melting ROIs.
One contributing factor to this sizeable delta is that Americans have a greater appetite for risk in business ventures and financial investments. That’s backed by research that has found:
“People living in Germany, Austria, and the Netherlands are the most risk-averse, while those in the US, Turkey, Australia, and the UK are more accepting of risk.”
Another factor may be how well the traditional American values of individual liberty and private property line up with blockchain’s free market.
It may be that cryptocurrency businesses and advocates in the Eurozone can find more success promoting the industry’s products by emphasizing how they align with the values of fairness, social justice, and progress.