As spot Bitcoin ETF applications continue to drive Bitcoin’s price up, there are indications that the opportunity to capitalize on institutional demand may soon diminish. Market experts argue that the recent surge in optimism regarding the approval of a BTC spot exchange-traded fund (ETF) has triggered a race known as “The Great Accumulation” for Bitcoin.
Several major players in the investment industry, including Fidelity, Invesco, Wisdom Tree, and Valkyrie, have followed in the footsteps of BlackRock and submitted applications for a Bitcoin spot ETF to the US Securities Exchange Commission. Analysts speculate that this influx of applications has played a role in BTC’s 19% price increase to $30,240 since June 16.
Crypto Giants Opinion on “The Great Accumulation” of Bitcoin
On June 21, Cameron Winklevoss, the co-founder of Gemini cryptocurrency exchange, expressed his belief that the process of “The Great Accumulation” of BTC has commenced among institutional and retail investors. He compared purchasing Bitcoin before the public launch of ETFs to investing in a company before its initial public offering (IPO). Winklevoss further indicated that the opportunity to buy BTC is rapidly diminishing, likening it to closing floodgates.
In his recent post, Michael Saylor, the Executive Chairman of MicroStrategy, shared his perspective on the matter, implying that as institutional demand for Bitcoin continues to rise, retail investors might find themselves being overshadowed or displaced.
During an interview with CNBC on June 21, Anthony Pompliano, a prominent BTC investor, predicted a potential conflict between retail investors and Wall Street, resembling a tug-of-war scenario.
Anthony Pompliano highlighted in a tweet on June 21 that Bitcoin’s remarkable journey from being worth nothing to nearly a trillion-dollar market cap occurred primarily without significant institutional involvement.
Consequently, he anticipates that when Wall Street and major players like BlackRock enter the market, BTC could face a shortage of available supply due to retail investors’ reluctance to sell to institutional investors. He reiterated this viewpoint during his CNBC interview, suggesting that Bitcoin may become highly illiquid as retail investors may prefer holding their positions rather than selling to Wall Street entities.
On the other hand, Dylan LeClair, a BTC analyst and founder of 21st Paradigm, provided insights into the current state of Bitcoin’s price, describing it as “extremely inelastic” and even more so than before.
This lack of responsiveness is attributed to the recent surge in ETF filings, which act as a catalyst for substantial inflows into the market. However, LeClair offered a prediction that the SEC is unlikely to approve any ETF applications until at least January or February 2024, indicating a significant delay in the approval process.