Why I think the inflows into the BTC spot ETF are not as bullish as many think. Here's my opinion on them:

First of all, what is a BTC spot ETF? A Bitcoin spot ETF (Exchange-Traded Fund) is a type of investment fund that is traded on stock exchanges, similar to stocks. The primary characteristic of a Bitcoin spot ETF is that its underlying asset is Bitcoin itself, rather than derivatives or futures contracts of Bitcoin.

The fund managers are the ones who offer these products. Some of them are BlackRock, Grayscale, Fidelity, Bitwise...

Many people talk about BTC inflows being bullish. To what extent? On one hand, it's capital that was going to enter BTC, whether through the ETFs or from some exchange or OTC purchase. On the other hand, these inflows are capital entering the ETF, not necessarily an increase in the fund's reserves.

When there are ETF inflows, it means that investors are putting more money into the ETF, buying shares of the fund. This increase in capital can lead to the fund manager purchasing more of the underlying assets (BTC) to match the fund's investment strategy. But if those assets were already bought, then the inflows are not direct demand as such.

The main question here is… are the fund managers holding BTC for themselves? Or just for the fund?

The institutional money that wanted to enter BTC has already done so a long time ago. We don't know if it's institutions that are buying BTC through ETFs, or if it's retail investors attracted by this possibility. What we do know is that BlackRock, Fidelity... have not disclosed whether they hold BTC for themselves. Nor has there been talk of any major institution entering the market, beyond offering a product (the ETFs). Remember that the news were about the product, and they did marketing for that. Not for the asset itself and its characteristics (what Bitcoin and crypto really implies)

In the end, the fund managers act like an exchange, keeping the fees for the volume generated in their fund. If they thought it was a market moment where there could be a large volume, then it was the best time to launch the ETF. But it's important to remember that ETFs can also be shorted, and the managers don't care whether these fees are generated when the price goes up or down. So they essentially act as an amplifier of an asset's movements and its volume.

To summarize, ETFs have some advantages such as providing more visibility to the asset and offering more options for capital inflow into the market. However, on the flip side, they also have disadvantages, such as diverting demand towards a fund's share rather than being direct demand for Bitcoin, it can lead to speculation about whether it's really as bullish an event as we have been led to believe, and it makes the asset more centralized, moving it away from its main goal of decentralization.

Some food for thought.

OTHERS (Altcoin index)

I'm still working on the new part of the Twitter thread on why I think it's not a good time to be bullish and why we should expect a larger correction, adding more solid arguments to the previous one. It should be ready for next week.

I wish you all a good weekend!

In moments like this, it's most important to keep a cool head and remind oneself that even though the market can be irrational at times, that doesn't mean you should stop being rational at all times.

As I mentioned before:

The market is going higher than expected, and that's a reality. But this is not going to go "up only" forever. I prefer to wait until I see strong reasons to be exposed to the market for the long-term, and not just because the price is going up. That would be FOMO. I'm not losing any money (because I haven't shorted alts for months and never shorted BTC, despite what people say), nor am I missing out on opportunities, because there are always opportunities. I'm just being cautious, waiting. Not following the masses and trying to be rational, even if it's hard.

The chart posted only shows how overextended Bitcoin is, but it's like that with the entire market.

BCH

Quick scalp long idea. Invalidation on chart.

Thread almost finished.

DOT

Resistance was broken, so probably going higher to the $14-15 area.

BTC

Currently at support. Two options:

Option 1 - Bounce from here to the liquidity zone at $74-75k, then reversal.

Option 2 - Clean break below the current support level ($68k-69k) and consolidation below.

That $68k-69k level is key. Once broken, the MS is broken. But so far it's acting as support.

ZCX

As long as BTC stays above the support level ($68k-69k), some low caps could still move up.

This one has an interesting setup and the BTC pair looks good too, so it could move even with BTC sideways or going down.

It's consolidating below the range high ($0.25) and looks ready to breakout.

ZCX/BTC

To add confluence to the pair against USDT.