‘Buy the rumor, sell the news’ — Bitcoin ETF may spark TradFi sell-off

Bitcoin retail investors may end up with a hot potato if the spot ETF go-ahead plays out like gold 20 years ago, analysis considers.

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Bitcoin (BTC) may suffer when the United States approves the first spot exchange-traded fund (ETF), a new warning says.

In a thread on X (formerly Twitter) on Nov. 28, Joshua Lim, head of derivatives at capital market firm Genesis Trading, predicted a volatile start to 2024 for BTC price action.

Bitcoin ETF approval: Retail may be left holding the buck

Lim said that Bitcoin is already a target for traditional finance, or “TradFi,” which is betting on winning big out of the spot ETF approval.

“We know tradfi guys / macro tourists are already long crypto ahead of ETF news. They’ve built the position over the last few months and are now paying handsomely to roll it,” the thread explained alongside data covering open interest on CME Group’s Bitcoin futures.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.