Cryptocurrency investors are stuck finding the right time to enter the market to secure profits, as the wider market continues to move sideways without a clear indication of what the next one will be.
But while direct investment is watching investors’ apprehension, indirect investment options seem to be doing well.
Bitcoin finds its audience on ETFs
June 5 marks one month since the devastating shock, which caused the king’s currency to fall by 23.5% in just three days. Since then, Bitcoin itself has not recovered, but its publicly traded funds (ETFs) have experienced growth.
The Canadian Purpose Bitcoin ETF has experienced steady inflows over the past 30 days, precisely since the day the fall began. During these entries, the ETF’s total holdings increased by 10,767 BTC and reached the ATH of 43,701 BTC ($ 1.3 billion).
At the same time, the stakes of Bitcoin ETF 3iQ CoinShares also rose by 3,917 ($ 116 million), as $ 29,000 was the right price for the build-up.
However, in recent days, the shares of the two ETFs have fallen by 3,200 BTC and 1,300 BTC, respectively.
But non-ETF investments are still struggling as demand continues to fluctuate wildly.
The Grayscale Bitcoin Trust, the largest non-ETF Bitcoin investment option, has seen the face of a premium since March 2021, and it peaked last month when GBTC traded at a discount of 31%.
Priced at $ 19.26 at the time of writing, GBTC still returns 29% in premium.
On top of that, there is Bitcoin itself, which is definitely not profitable for investors right now, as there is no indication of a recovery soon.
However, depending on the base cost ratio (CBR) of the short-term holder and the long-term holder, the centerpiece is approaching a generational buying opportunity. Once the LTH CBR crosses over the STH CBR, investing in the token would be ideal again.
However, given the current gap, it could be a few months before this happens. Either way, Bitcoin is seriously undervalued right now.
The last time Bitcoin was observed to be so undervalued was in March 2020, after which Bitcoin participated in a multi-month rally that started at $ 5,195 and ended in January 2021.
While the same will not happen again this time around, BTC may still see peaks in the coming weeks.