The approval of the United States spot Bitcoin exchange-traded funds (ETFs) has legitimized the cryptocurrency industry in the eyes of investors.

The approval of the first U.S. spot Bitcoin ETFs in January has resulted in the launch of the first regulated, publicly traded Bitcoin-based investment vehicles.

Moreover, the launch of the Bitcoin ETFs has provided a significant shift in investor mentality, according to Sheraz Ahmed, the managing partner of Storm Partners, who said:

“I do believe the [Bitcoin] ETF, not from what it is, but from what it means, has had a large effect. And over the past couple of months, we've seen an incredible change in mentality.”

The U.S. spot Bitcoin ETFs have amassed over $57.7 billion worth of Bitcoin (BTC) in total onchain holdings, according to Dune data.

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It’s not the Bitcoin ETFs themselves, but the regulatory nod

Bitcoin ETFs have been a significant step towards legitimatizing the crypto industry, especially in the eyes of the mainstream.

However, it’s not the publicly-traded products themselves, but the underlying regulatory nod, that is offering crypto investors more peace of mind, according to Ahmed. He said:

“When I look into people's eyes, I see that they can finally breathe. This industry is not going away tomorrow. And that reassurance for an entrepreneur is like eight hours of sleep.”

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Bitcoin ETF inflows take a breather along with the BTC price

Last week on June 10, the U.S. Bitcoin ETFs broke a streak of 20 consecutive days of net positive inflows.

The Bitcoin ETFs have since amassed four days of consecutive net outflows, with over $152.4 million worth of cumulative net outflows on June 18, according to Farside Investors data.

Bitcoin price started falling from above the $70,000 mark on June 7. The outflows from the ETFs saw it correct to an over one-month low of $64,032 on June 18, where it found its current support, according to Bitstamp data.

ETF inflows were a significant price of Bitcoin’s 2024 price rally. By Feb. 15, Bitcoin ETFs had accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.

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