Vanguard ‘Degen Effect’ Fuels 10% Surge for Bitcoin in Explosive Rebound
Bitcoin surged nearly 10% after Vanguard lifted its long-standing ban on trading Bitcoin ETFs, triggering significant institutional interest.Summary
Bitcoin's price experienced an explosive rebound, surging over 6% and nearing $94,000 shortly after Vanguard ended its multi-year ban on trading regulated crypto ETFs, including Bitcoin ETFs. ETF analyst Eric Balchunas attributed this immediate rally to the "Vanguard Effect," suggesting conservative investors, or "Vanguardians," exhibited a "degen" impulse to buy immediately. This policy reversal allows trading of Bitcoin, Ether, XRP, and Solana ETFs, marking a significant shift from Vanguard's previous stance that crypto lacked intrinsic value. The surge was accompanied by massive trading volumes in BlackRock's IBIT ETF, hitting $1 billion in the first 30 minutes. While the event shows a thinning wall between traditional finance and crypto, analysts like Balchunas caution that this might be a one-off burst from pent-up demand rather than the start of a sustained systemic flow of conservative capital.
(Source：BeInCrypto)