Bitcoin price was facing a potential downside risk as it approached the $60,000 mark when a significant development occurred. We had mentioned that spot Bitcoin ETFs had not yet been offered to customers at places like asset management firms, funds, and banks (to the desired extent). Now, the news that has arrived is quite significant.
Why Is Bitcoin Rising?
During the launch period, that is in January, officials from Merrill Lynch and Vanguard took the stage. They said these spot Bitcoin ETFs were too risky and that they would not offer them to their clients. And yes, Merrill Lynch, one of the major players in the 2008 crisis that pushed the US to the brink, was talking about risk. History is full of such contradictions. Anyway, if we return to the present, the company will now offer spot Bitcoin ETFs to its clients.
Following yesterday’s volume exceeding $7 billion, the company must have become convinced that there is real money to be made, as it did not want to miss out on the current bull markets and preferred to make a complete 180-degree change in its decision. Wells Fargo also made the same decision today.
This development means that more financial companies may start seeing Spot Bitcoin ETFs as investable, leading to continued increases in volumes. Currently, spot Bitcoin ETFs are primarily seeing demand from issuers’ clients and are not fully open to the public yet.
