Some new data points are coming out right now which are starting to make us rethink ETFs and what's been going on for the last few months. It's show that a large amount of the investing still to this are are not coming from large funds considered Institutional investing and instead is still being driven by what are known as retail investors.

What ETFs did allow is for retail investors to be able to take all their locked up 401k funds and divert some of that into crypto.

When we pull the numbers it's said that roughly 7.2 trillion dollars is currently invested into 401ks. That means that if just 1% of the money in those 401ks was moved into bitcoin ETFs it would be a massive 72 billion dollars added to the market cap. That's actully a rather large sum of money being injected in and it doesn't even account for the big boys.

We get this data by looking at the average order values of these ETFs such as Blackrock which comes in at just $13,000 per trade. that would be roughly 5% -10% of a lot of normal 401k accounts but also highlights that there aren't all that many massive orders coming into bitcoin etfs at the moment.

These ETFs also are not contributing as much as some people may think. Roughly 2.6 billion dollars was inflowed into bitcoin last month. When you pair that up with the overall market cap we start to see it's only a few percentages of the amount of money actully flowing in right now.

But it's also increasing month over month by roughly 20%

Cathie Wood from Ark Investing has stated that with her company Fidelity which is just a little under BlackRock in terms of inflows of money to Spot Bitcoin ETFs has said that no wire house has of yet approved bitcoin yet. This means all of the action we have seen so far has come from pre wirehouse services even approving it.

What Is A Wirehouse?

"A wirehouse is a term describing a full-service brokerage firm. A brokerage firm acts as an intermediary who makes matches between buyers and sellers of stocks, bonds, and other financial assets."

In short it means the big boys that control vast amounts of money still haven't figured out the system yet and are currently working on it which should create a massive influx of money into these ETFs.

Side Track Goal

Many years ago I said to people that you should do everything you can to get 1 BTC and hold it. This is just my own opinion. But with only 21 million of the tokens and many most likely lost forever brining that number more towards the 20 million mark it means that only 20 million people around the WORLD yes WORLD would be able to hold 1 BTC. With over 8 billion people now on this earth you can see how much potential value is stored up in the next few years for bitcoin. There are other reports that say over 6 million BTC have been lost forever and if that's the case it makes the case and point even more valuable.

Now of course I have to throw this in here...
This article is for entertainment purposes only and is not financial advice. Do your own research before investing and understand the risks.

The Big Boys

The big boys now that ETFs have been approved still have to get everything in the works in most cases. These systems are a bit slower and they are coming in at around 3-6 months before they are going to get involved.

Bitcoin ETFs where approved Jan 10th of 2024 which means we still have at least 2-3 weeks before we start to maybe some some big action. However we are most likely looking more towards middle to end of year before they really start to kick off. In that time frame we could see the Bitcoin markets cool off like we have been seeing recently which is going to give these bit time money systems a bargain on their bitcoin.

The Case Of 7.5 Trillion Market cap By 2025

There's expected charts coming out by companies that it's not only bitcoin that's expected to grow but a number of other sectors.

While bitcoin is expect to hold a majority of it we should see funds stream into Ethereum as the second largest and then Solana and other blockchains along with the gaming sector. But it's actully a little shocking how small the gaming sector is on these charts. It only makes up around maybe 5% of that market cap but it's one that's expected to grow much more rapidly in 2025. That still puts gaming in general at a massive 375 billion dollar industry and when you compare that to the overall gaming industry today which is 214.2 billion you can see that it's actully massive since in the 375 billion dollar industry case we are ONLY talking about crypto based games and not non crypto based agames.

Posted Using InLeo Alpha