A Trip Down Down Memory Lane

Review of Market Reception of Bitcoin ETF, Gold, & "Big IPOs"

Spot Bitcoin ETFs Launch - Week 1 Review

Last week marked a significant milestone for Bitcoin as it effectively had its "IPO" with the launch of 11 spot ETFs trading in the USA after receiving long awaited SEC approval last Wednesday in a 3-2 decision. If you are an active Twitter/X user you know that it was impossible to avoid discussion of this event as predictions and opinions filled your wall. Bulls argued that the “mountain” of demand would drive the market higher given the low float relative to massive demand from traditional asset managers. Bears argued that the 200% price appreciation since December 2022 and large build of open interest in futures markets implied that it would be a “sell the news” event.

On January 10th the SEC granted approval after the close and then all of the ETFs set their NAV at a reference price of Bitcoin of roughly $45,855. The Bitcoin price started climbing overnight hitting $48,573 at 9:30am EST when the US stock market opened. It briefly climbed abo…