- The recent optimism for an approved exchange-traded fund (ETF) might ignite “The Great Accumulation Race” for Bitcoin.
- The front-run institutional demand window might close as spot Bitcoin ETFs filings help boost the Bitcoin price.
Over the past week, notable investors have applied for a Bitcoin spot ETF with the United States Securities Exchange Commission. BlackRock, the New York City-based American multinational investment company, has set the sudden interest. Crypto-focused asset manager Bitwise Valkyrie, Invesco, Fidelity, and Wisdom Tree, followed suit in a similar bid.
The SEC’s approval of spot Bitcoin ETF is a game changer in the industry as the government body has been holding back spot Bitcoin ETF from the American market. Several companies, such as Fidelity, Winklevoss Twins, and others, have been denied their application in the past. Bitwise filed for a spot in Bitcoin ETF in October 2021, and the SEC rejected the proposal in June 2022.
The approval of BTC-based ETFs has triggered a significant accumulation of Bitcoin by prominent firms, propelling the price of BTC to $30,000 again. The crypto market and Bitcoin sentiment have significantly shifted this month from extreme fear of doom due to the American government’s ongoing crackdown on the industry to a euphoric high as prices hit $30,000 again.
The Great Accumulation Race
Crypto industry pundits quickly exploited the positive sentiments to start the accumulation race. On June 21, Bitcoin pioneer and entrepreneur Anthony Pompliano commented on the current market state during an interview with CNBC. He compared the current market atmosphere to the great space race and coined the term “Great Accumulation Race.”
Institutions and individuals are all scrambling to get their share of the 21 million Bitcoin that will ever be in existence.
The Great Accumulation Race is underway.
Institutions and individuals are competing for their share of the 21 million bitcoin.
Always enjoy taking with @SullyCNBC pic.twitter.com/faUMVNcvZy
— Pomp 🌪 (@APompliano) June 21, 2023
Pompliano added that retail investors are ahead of time and have accumulated all the Bitcoin that has been produced so far and that 68 percent of the circulating Bitcoin is being held and has stayed the same for a year. The entrepreneur also noted that traders are reluctant to sell their Bitcoin now that Wall Street is showing interest.
“When you have a fixed supply asset that’s highly illiquid and a bunch of demand comes into the market, the price has to go up,” he said. Gemini co-founder Cameron Winklevoss echoed Pompliano’s sentiments and said:
The Great Accumulation of Bitcoin has begun. Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast.
The Great Accumulation of bitcoin has begun. Anyone watching the flurry of ETF filings understands the window to purchase pre-IPO bitcoin before ETFs go live and open the floodgates is closing fast. If bitcoin was the most obvious and best investment of the previous decade, this…
— Cameron Winklevoss (@cameron) June 21, 2023
Industry analysts think the SEC crackdown on the crypto industry is part of a bigger scheme to help Wall Street gain industry control.
Bitcoin price is $30,240 at the time of writing, while the Crypto Fear and Greed index has grown from 49 (Neutral) to 65 (Greed) within the last two days.