The approval of the first US Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) has fallen short of expectations in terms of its impact on Bitcoin prices. The price of Bitcoin did not move much, and is still at around$40.000 range

Research on thematic equity ETFs suggests that they tend to underperform broader ETFs in the long run. This is because thematic ETFs often attract investment when the underlying assets are already expensive, resulting in a "buy-high, sell-low" strategy for investors.

The exchange-traded funds related to the bitcoin price were already deployed in the several world countries (mostly in Canada), and prior to the approval form the SEC funds were appraised up to$4.16 billion.

ETFs are not a guaranteed solution for boosting asset prices, and in many cases, they generate hype and long-term under-performance. Despite hopes for a sustained rally in Bitcoin prices, the approval of Bitcoin ETFs may not fulfill these expectations, at least at the moment.

Source: The Economist