Almost everyone expected #Bitcoin to either rip, or to sell off on the ETF news. But BTC managed to deceive almost everyone, once again. đ
Whatâs behind the muted price response?
Turns out that compliance departments at brokerage firms often take weeks to several months to add new products to their internal âapproved products listâ for advisors to sell.
In addition, several large broker dealers including Citi, Vanguard, UBS and Merrill Lynch have either restricted or disallowed their retail clients to buy any spot Bitcoin ETFs. There may be other brokers who blocked these sales as well for ideological reasons. They donât believe in Bitcoin. I didnât expect this at all. Theyâll lose customers quickly with this strategy.
There are also reports of people rotating out of bitcoin ETF proxies, like BITO and mining stocks, in order to redeploy that capital into a better proxy, like any of the spot ETFs. That would also mildly suppress the amount of ETF inflows.
This may take several months to sort out before the floodgates open. I hope this is the case, as I need to stack more! We all do.