A senior ETF analyst at Bloomberg is calling BTC’s sudden price increase the “Vanguard Effect.”
On Tuesday, Vanguard reversed its ban on crypto products, allowing clients to purchase ETFs and mutual funds that primarily hold crypto assets like Bitcoin, Ethereum, XRP and Solana.
The move coincided with a 6.98% rise in the price of BTC, from $87,019 to $93,099 in the last 24 hours – a price bump that Bloomberg analyst Eric Balchunas says is no coincidence.
“THE VANGUARD EFFECT: Bitcoin jumps 6% right around US open on first day after bitcoin ETF ban lifted. Coincidence? I think not.
Also $1 billion in IBIT volume in the first 30 minutes of trading. I knew those Vanguardians had a little degen in them, even some of the most conservative investors like to add a little hot sauce to their portfolio.
Vanguard saving Bitcoin was not on my 2025 bingo card I can tell you that.”
Although he believes Vanguard’s abrupt turnaround on crypto is positive, Balchunas says he thinks the abrupt price jump is likely a one-time event.
“I think there’s a small percentage of people who were pent up [to buy]. And it’s good just to be on the platform and available. You never know when others may allocate.
That said, you can’t rely on ETF Boomers for everything.”
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/HUT Design
