Hello!
Today I saw something really funny and interesting at the same time, and it was shared by Eric Balchunas. He called it the Vanguard effect. And honestly, after looking at the chart, I kind of agree with him. Bitcoin suddenly jumped around six percent right when the US market opened on the first day after the ban on bitcoin ETFs at Vanguard got removed. Maybe it is just a coincidence, but I really do not think so either.
It feels like the moment people at Vanguard were finally allowed to touch bitcoin again, some of them ran in faster than anyone expected. These are supposed to be the most conservative, slow moving investors. People who prefer safe assets, long term funds and no crazy experiments. But Eric joked that even the conservative crowd sometimes wants a little hot sauce in their portfolio. And honestly that made me laugh, because it is exactly like that. Even the most serious investor has a small part inside that gets curious when something starts moving fast.
Also the volume numbers were insane. IBIT, the BlackRock bitcoin ETF, moved around one billion in the first half hour. That is not normal activity. That feels like people waiting behind a door that suddenly opens and everyone rushes in at the same time. It gives you this feeling that the market is waking up again after a long slow period. Like the moment when you are not sure if something is alive, and then suddenly it starts running.
For me, the most interesting part is not just the price move. It is how many traditional investors are now slowly joining the bitcoin world without even calling themselves bitcoin people!!
They just want exposure to BITCOIN!
They do not want to deal with wallets or private keys or any of that. They want something simple on their broker screen. And now that Vanguard finally allows it again, we see how much real demand was waiting.
Maybe this is only the beginning. Maybe more will follow. But one thing is clear. Bitcoin still has this power to surprise everyone, even the people who thought they already understood it. And seeing Eric Balchunas highlight this moment made it even more fun to watch.
Have fun!
