There is potential for disappointment, yet as the U.S. market opened, cryptocurrencies began delivering promising results. Earlier in the day, headlines declared that Vanguard’s entry into crypto signaled a major shift. Volume data and the performance of DAT stocks suggest significant changes are underway.
The Vanguard Effect
The surge witnessed in cryptocurrency today might be remembered as the “Vanguard Effect” for years to come. The world’s second-largest asset manager, serving over 50 million clients, has permitted crypto investments as U.S. markets opened. This marked a substantial move to reignite demand for Bitcoin and altcoin ETFs.
Within these 50 million investors, there are certainly individuals and institutions keen to allocate portions of their portfolios to cryptocurrencies. Today’s ETF entry figures will demonstrate the strength of this interest; initial impressions are overwhelmingly positive.
ETF investors behave distinctly from individual crypto investors, which is why capital inflow through the ETF channel is crucial for maintaining BTC’s support levels.
Bitcoin fell 6% yesterday, yet ETFs managed to attract some inflows. The total weekly flow currently stands at +$231 million. Fidelity plays a significant role, reminding us that inflows are a team effort. Imagining Bitcoin’s state without boomers is tough.
The song they listened to this morning goes:
Binance is crashing, Eric Trump, Yen trade collapsing. ETFs are seeing inflows, OGs fear their shadows. Vanguard kneels, locals keep it below 90. We didn’t start the fire…
Bitcoin ETF saw a 6% gain on the first day after the ban lift, coinciding with U.S. market openings. Coincidence? I doubt it. Moreover, IBIT volume reached $1 billion in the first 30 minutes of trading. I knew Vanguardians had a wild side; even the most conservative investors enjoy a little excitement in their portfolios. Vanguard rescuing Bitcoin wasn’t on my 2025 bingo card, I must admit.
Altcoins are experiencing double-digit gains. ETH rose by 5% and BitMine went up by 10%. MSTR mNAV increased from 1.11 to 1.16.