As time goes on, the approval of cryptocurrency exchange-traded funds (ETFs) in the United States has the potential to bring about a significant disruption in the market structure, much like what has been observed in the gold market. This approval could lead to a shift in the prevailing narratives surrounding Bitcoin (seen as a store of value) and Ethereum (viewed as a cryptocurrency technology play), moving them closer to being perceived as traditional investment assets.
Essentially, ETF investors may be driven by different narratives and demand functions compared to those of native cryptocurrency investors. For instance, ETF investors may be motivated by factors such as portfolio rebalancing or disposable income, which differ from the reasons that drive traditional investors. This situation is comparable to the way in which Asian central banks purchase gold for purposes that are distinct from those of conventional investors.
