In case you were in a coma, living in a cave, getting out of prison or was introduced to the internet for the first ever, Bitcoin has 10 ETFs since January 2024.
On social media, you will get plenty of news everyday around Bitcoin. One of the most interesting news related to this is the AMOUNT of BTC (Bitcoin) that is owned by the ETF. There are daily and weekly changes posted to X (or AKA Twitter).
The one you should be aware of is related to "supply and demand". If there is MORE demand for BITCOIN, then the price will go up. If there is NO or LOW demand for BITCOIN, then the price of BITCOIN will be going down.
Since the spot ETF was released in January 2024, what do we notice?
Demand for the ETF product has pulled in more money than many WALL STREET experts forecasted. In fact, this is a simple way to tell what is going to happen with BITCOIN prices based on the "demand" of these products. Don't forget that most "hardcore" Bitcoin owners don't use their BROKERAGE account to trade Bitcoin. Therefore the SPOT ETF products are mostly a gauge of retail investors that are moving money from OTHER ASSETS into the BITCOIN ETF.
Many of my social media followers know I purchased BITO a day before the BITCOIN ETF release. Then the next day, I purchased FBTC once it was available in the open market.
The reason I invested in a BITCOIN ETF is that I was looking for an easy "ON-RAMP" into BITCOIN. I sold some dividend stocks (like ALLY Bank and FORD) and used that money for this purchase.
When will I sell? I don't have an answer to that question. I might use a sell 10% of my position when key milestones are reached. But I believe the ETF volume is just one indicator and I will use that to tell me if Demand is dropping or picking up. I'm looking for long-term trends and not day to day movement.
The next thing is the Bitcoin halving on April 20, 2024. Will the price drop after the halving or will the price continue to run up prior to the halving. If you are investing in BITCOIN Mining business (like RIOT or MARA), you might be in for a bumpy ride until the FIRST earning release after the April 20 halving.
The next thing is the Ether ETF. If that gets passed, that will give you an indicator of demand for ETH (just like it does for Bitcoin). This can keep the market hype going (as the rising tide lifts all boats).
Don't forget that this is not financial advice. Never invest more than you are willing to lose. What I'm doing might not be suitable for you.
