Either a good or bad investment option for retail investors, spot Bitcoin ETFs will unlikely reduce demand for BTC in the long term.
The approval of the first spot Bitcoin (BTC) exchange-traded funds (ETF) in the United States will enable billions of dollars in institutional money to enter the market.
According to public trading data, the total volume across ten spot Bitcoin ETFs reached more than $4.5 billion on the first day of trading on Jan. 2024. Grayscale Investments’ Bitcoin ETF alone reportedly handled more than $2 billion in volumes.
As massive amounts of institutional capital are now expected to flow into the Bitcoin market, one might get concerned about the potential implications of a spot Bitcoin ETF for smaller investors.
