Bitcoin counterattack: 44% surge in three weeks triggers ETF frenzy

In today's ever-changing financial market, the volatility of cryptocurrencies always attracts widespread attention. Recently, Bitcoin, as the leader of digital currencies, has soared 44% in just three weeks. This astonishing increase not only cheered investors, but also promoted the rise of related exchange-traded funds (ETFs). This phenomenon not only reflects the active market, but also shows the gradual integration of cryptocurrencies in the traditional financial system. Next, we will delve into the factors behind Bitcoin's counterattack and its impact on the ETF market.

First of all, the rise of Bitcoin is not accidental, but the result of multiple factors. Analysts pointed out that changes in market sentiment are one of the important factors driving this wave of gains. In the past few months, as global economic uncertainty has intensified, investors have begun to seek safe-haven assets. As a decentralized digital currency, Bitcoin has gradually been regarded as "digital gold", and its scarcity and anti-inflation characteristics have attracted more and more investors. This shift is not only reflected in retail investors, but also the participation of institutional investors is gradually deepening.

For example, the famous Tesla company announced the purchase of $1.5 billion worth of Bitcoin in early 2021, which undoubtedly injected a shot in the arm for the entire market. In addition, companies such as MicroStrategy and Square have also joined the ranks of Bitcoin investment, further verifying the confidence of institutions in Bitcoin. This kind of institutional participation has brought deeper market recognition, causing the price of Bitcoin to rise rapidly in the short term.

At the same time, changes in the regulatory environment are also an important factor driving the Bitcoin market. Recently, many countries and regions have adjusted their regulatory policies on cryptocurrencies, and some countries have even begun to consider launching central bank digital currencies (CBDCs). This policy relaxation not only eases investors' concerns, but also provides good news for the rise of Bitcoin. For example, the U.S. Securities and Exchange Commission (SEC) has gradually become open to Bitcoin ETFs, which paves the way for the launch of related financial products. Investors' expectations for these new products have further promoted the rise of Bitcoin and related ETFs.

While the price of Bitcoin has soared, the performance of related ETFs should not be underestimated. As a flexible investment tool, ETFs can provide investors with diversified investment options. As the price of Bitcoin rises, many investors have begun to pay attention to Bitcoin ETFs, believing that this is a relatively safe way to participate in the cryptocurrency market. According to market data, since the price of Bitcoin began to rise, ETFs related to Bitcoin have also seen significant growth. For example, the net asset value of the ProShares Bitcoin Strategy ETF has increased rapidly as the price of Bitcoin has risen, reflecting the market's enthusiasm for this product.

In addition, the influence of social media and online platforms should not be underestimated. In the past year, the number of discussions about Bitcoin and cryptocurrencies on social media has surged, especially on platforms such as Twitter and Reddit, where investors share their investment insights and success stories. The rapid spread of this information has not only increased public awareness of Bitcoin, but also stimulated more people's interest in investing. In this case, investors' emotions tend to influence each other, forming a "herd effect", further driving the rise in Bitcoin prices.

In addition to market sentiment and regulatory policies, technical factors also play an important role in Bitcoin's counterattack. Bitcoin's network security and transaction efficiency continue to improve, making it more feasible as a means of payment. As more and more merchants begin to accept Bitcoin payments, the practicality of digital currencies is gradually increasing. For example, PayPal, a world-renowned online payment platform, allows users to use Bitcoin for shopping, which undoubtedly provides strong support for Bitcoin's daily application.

Of course, any market rise is accompanied by risks. As the price of Bitcoin has risen sharply, market volatility has also increased, and investors need to remain vigilant. Although Bitcoin's short-term performance is exciting, there is still uncertainty about its long-term sustainability. Market analysts remind investors that while chasing Bitcoin, they should also look at risks rationally and avoid blindly following the trend.

In summarizing Bitcoin's recent counterattack, it is not difficult to find that this wave of gains is not only a reflection of market sentiment, but also the result of the intersection of multiple factors. As the price of Bitcoin continues to rise, the performance of related ETFs is also constantly improving, which provides investors with more choices and opportunities. However, the future of the market is still full of variables. While enjoying the benefits, investors must also be cautious in dealing with risks.

Finally, Bitcoin's counterattack is not just a rise in prices, but also a challenge to the traditional financial system. With more and more investors and institutions participating in it, the cryptocurrency market is gradually maturing. In this rapidly developing field, how to seize opportunities and deal with risks will be a question that every investor needs to think about. Whether it is the craze of Bitcoin or the rise of related ETFs, they remind us that the transformation of the financial market has never stopped. What will the future investment trend be like? Let us wait and see.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Cryptocurrencies such as Bitcoin have rebounded strongly recently. Before the Senate voted on the cryptocurrency amendment bill in the infrastructure bill, Bitcoin was at its highest point since May, and other blockchain industry ETFs also rose.

Bitcoin broke through $46,000 on Monday (9th), with a weekly increase of more than 5%, and has rebounded 44.7% since the week of July 19. Ethereum soared nearly 64%, reaching $3,100 on Monday.

Other blockchain-related ETFs also rose sharply. The world's largest and longest-established Amplify Transformation Data Sharing Active ETF (BLOK-US) rose 13.4% in the past seven days.

In addition, the Van Eck Vectors Digital Transformation ETF (DAPP-
US) with an asset size of US$37 million soared 24%, and the Bitwise Crypto Industry Innovator ETF (BITQ-US) with an asset size of US$66 million rose 21%.

These ETFs are highly focused on the crypto industry, and the market expects 20 to 50 stocks to benefit from the booming industry, including Bitcoin miners, exchanges, custodians, private blockchain developers, and even wafer manufacturers and mine warehouse suppliers.

Although these ETFs tend to move in line with Bitcoin, they are relatively less volatile. These ETFs can provide the market with a channel to invest in the crypto industry before Bitcoin ETFs are allowed to be launched. However, the allocation of constituent stocks of these ETFs is still different. Amplify's ETF is mainly an active fund, and its 43 stocks are the most diversified among all related ETFs.

VanEck and Bitwise
ETFs are index funds, the former tracking the MVIS Global Digital Asset Index and the latter tracking the Bitwise Crypto Innovation 30 Index. The two portfolios overlap by more than 70%, but VanEck's handling fee is 0.2% lower.

A bipartisan group in the U.S. Senate recently proposed to tax cryptocurrency transactions to seek $28 billion in revenue for the infrastructure bill. However, the clause requires all brokers to report taxes to the Internal Revenue Service (IRS), which means that miners, software developers, and stakeholders may be listed as taxable objects, triggering opposition from the cryptocurrency circle.

In order to alleviate the concerns of the cryptocurrency circle, the Senate introduced an amendment to narrow the scope of regulation to avoid stifling industry innovation. The cryptocurrency industry advocates that the original amendment excludes miners and stakeholders from intermediaries and has the support of Treasury Secretary Yellen.

In addition to the expected changes in strict regulatory restrictions, the U.S. Securities and Exchange Commission (SEC) has also begun to open up more crypto industry financial products. Recently, the Bitcoin Strategy Professional Fund (BTCFX-
US) was approved for launch, but the market is still looking forward to the Bitcoin ETF to avoid the risks of the futures trading mechanism.