"This is a historic moment!"
"The cryptocurrency era has truly begun!"
"The opportunity to get rich has finally come!"
A few days ago, an old friend who has been in the cryptocurrency circle for nearly ten years suddenly asked me: "Why am I more afraid to act rashly when I see such major benefits?"
This question speaks to the hearts of many people. After experiencing countless ups and downs, veteran players seem to have developed an instinctive vigilance against "historic moments". Those veteran players who used to be so excited that they couldn't sleep because of every good news are now surprisingly calm.
History will not deceive you: past glory and disillusionment
2013: The First Peak
Let’s turn back time to the winter of 2013. At that time, Bitcoin first reached the peak of $1,000, and the celebrating crowd thought they had grasped the key to wealth, unaware that a year-long abyss of despair awaited them. In just 12 months, 80% of their wealth slipped away like sand through their fingers.
2017: Frenzy and Winter
Fast forward to 2017, at the peak moment of $20,000. 'This time it's really different!' 'Blockchain will change the world!' 'Bitcoin is going to the moon!' - These bold statements seem like they were just yesterday, but what followed was nearly two years of winter. The harsh reality of the market delivered a profound lesson to all participants.
2025: The Arrival of ETFs - Major Moves on Wall Street
And now, the ETFs have arrived. And not just Bitcoin ETFs. Wall Street's appetite is even greater than we imagined. Just in the past month:
Goldman Sachs quietly increased its holdings of cryptocurrency ETFs by over $2 billion.
Grayscale has begun applying for ETFs for Dogecoin and Ripple.
Franklin Templeton has directly targeted cryptocurrency index funds.
Data shows that at the beginning of 2025, Bitcoin spot ETFs attracted over $4 billion in funds, and the total for the year is expected to exceed $50 billion! Such a scale of capital inflow will undoubtedly have a profound impact on the market.
What is an ETF?
ETF, short for Exchange-Traded Fund, is an investment product that can be traded on the stock market. Imagine you want to buy Bitcoin but are worried about the safety of your private keys and don’t want to deal with the blockchain, or even touch a cryptocurrency exchange. Now, you just need to click a few times on a Wall Street-certified exchange like you would to buy stocks to participate in cryptocurrency investment.
What impact do ETFs have on Bitcoin and Altcoins?
It has turned once esoteric cryptocurrencies into 'public goods' that everyone can invest in. Not just in the U.S., even Europe’s largest asset manager BlackRock has begun laying out Bitcoin ETFs in Europe. This convenience may attract more ordinary investors into the market.
1. The Double-Edged Sword of Liquidity
ETFs can indeed bring in massive amounts of capital, but do you understand the rules of Wall Street's game? When liquidity surges like the tide, they cheer; when it recedes like the ebb, they've already quietly left. This rapid flow of funds may exacerbate market volatility.
2. The Myth of Institutional Entry
Yes, big capital has finally arrived. But don't forget an iron rule: Wall Street never does charity, every move they make is meticulously calculated. When retail investors are overjoyed thinking they've found a backer, they may unknowingly have become someone else's pawn.
3. The Cost of Market Recognition
This is indeed a milestone moment, but you must understand that recognition does not equal an increase. Sometimes, the biggest risks are hidden within the most obvious good news. The market may undergo a re-pricing process, which is not always smooth.
4. The Two-Way Flow of Global Capital
When ETFs make cryptocurrencies accessible, funds will indeed flow in. But don't forget, this convenience is two-way; it also makes it easier for funds to withdraw. Against the backdrop of increasing global economic uncertainty, this two-way flow may exacerbate market instability.
Retreat in the rapids? Advance in the rapids? Stay cautious!
The caution of retail investors is not cowardice, but an awakening after being tempered through trials. Perhaps this is the most valuable gift the ETF brings to the market: a group of investors who think more critically. True experts never chase others' feasts; they focus solely on their own rhythm.
1. Maintain Inner Clarity
When everyone is in a frenzy, maintaining rationality is more precious than gold. Don’t let short-term good news blind you; the market will never betray those who are patient. Remember, in investing, emotions are often the greatest enemy.
2. The Art of Setting Stop-Losses
No matter how optimistic you are about this opportunity, remember: the market is best at shattering people's dreams. Setting stop-loss orders is like buying yourself a 'regret pill.' This not only protects your funds but also helps you remain calm during market volatility.
3. The Wisdom of Planning for the Future
Instead of chasing short-term craziness, it's better to look further ahead. Real opportunities often quietly emerge after the noise subsides. Studying underlying technologies and focusing on long-term trends is key to staying undefeated in this rapidly changing market.
In this new market landscape, maintaining independent thinking and not blindly following trends may be the key to achieving success in the future.
