A long awaited experiment Bitcoin spot ETFs in the United States this year have helped fuel optimism that the popular cryptocurrency's value can appreciate quickly. The logic is simple: With an easy, low-cost way for ordinary investors to buy bitcoin, the supply-demand curve shifts and the value of each bitcoin increases.
But the response has been somewhat mixed. Bitcoin's value has nearly doubled over the past year to around $43,000 today, but it has largely fallen by the wayside in recent weeks. Is the hype and subsequent reaction another example of the old Wall Street maxim of “buy the rumor, sell the news”?
To be fair, we've been checking the flows in and out of spot bitcoin ETFs more often than we'd like to admit, but we still want to know more. So, we asked TechCrunch readers if they'd like to buy bitcoin through one of the new spot ETFs, if they hold bitcoin elsewhere, and what impact these new investment vehicles will have on its value and crypto itself.
After several dozen replies from founders and operators, we discovered some interesting trends. About a quarter of respondents to our short, unscientific survey reported that they would not buy bitcoin through an ETF and already held bitcoin elsewhere. Where did people keep their coins? Everywhere, it changes: self-custody, Coinbase, Kucoin, all kinds of locations. Most impressively, Dara Khan, head of marketing at Bitcoin at Descent DAO, said her wallet “ended up at the bottom of the ocean, lost it in a boating accident :(.”