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The Accelerated Accumulation of Bitcoin: The Changing Landscape
With the advent of Bitcoin spot exchange-traded funds (ETF) filings fueling Bitcoin's price surge, some argue that the opportunity to preempt institutional demand is quickly diminishing.
The recent resurgence in optimism for an approved Bitcoin spot ETF is sparking what industry experts refer to as the "Great Accumulation Race" for Bitcoin.
In the last week, Fidelity, Invesco, Wisdom Tree, and Valkyrie have joined investment titan BlackRock in seeking approval for a Bitcoin spot ETF from the United States Securities Exchange Commission. Many analysts attribute Bitcoin's impressive 19% price leap to $30,240 since June 16 to this movement.
Institutional and Retail Players in the 'Great Accumulation'
Gemini co-founder, Cameron Winklevoss, declared on June 21 his belief that the "Great Accumulation" of Bitcoin has kicked off among institutions and retail investors.
Winklevoss proposed that purchasing Bitcoin ahead of the ETFs becoming available to the public is akin to investing in a company before its Initial Public Offering. He indicated that the "floodgates" for Bitcoin acquisition are "shutting quickly."
Echoing this sentiment, MicroStrategy Executive Chairman Michael Saylor suggested that escalating institutional demand might soon sideline retail investors. He asserted, "The window to front-run institutional demand for Bitcoin is closing."
At present, Bitcoin is changing hands for $30,240, while the Crypto Fear and Greed index has soared from 49 (Neutral) to 65 (Greed) within just a couple of days.
The Tug-of-War: Retail Investors vs Wall Street
In a recent interview with CNBC, Bitcoin investor Anthony Pompliano predicted an impending tug-of-war between retail investors and Wall Street. He said, "Institutions and individuals are both racing to secure their share of the 21 million Bitcoin that will ever exist. While retail investors have a 15-year head start, 68% of the mined and circulated Bitcoin hasn't been moved in a year."
Pompliano emphasized that Bitcoin's growth from zero to a nearly $1 trillion market cap happened with minimal institutional involvement. Therefore, he foresees Bitcoin becoming "highly illiquid" when "Wall Street and BlackRock enter the market," as retail investors will resist selling to Wall Street.
The Influence of Recent ETF Filings
Meanwhile, Bitcoin analyst and 21st Paradigm founder Dylan LeClair mentioned that Bitcoin's price is currently "extremely inelastic" – more than ever before – amid the recent ETF filings. These are acting as a "catalyst" for substantial new inflows into the market.
However, LeClair anticipates that the SEC will not approve any ETF application until at least January or February 2024.
