The launch of Bitcoin-focused ETFs has followed a familiar pattern in the world of financial assets. Prior to the release of these ETFs, there is often a surge in asset prices as investors anticipate positive developments or “good news.” However, once the event actually occurs, there is typically a notable slump in prices. This phenomenon, known as “buy the rumor, sell the news,” is believed to be driven by strategic buying from institutional investors and retail investors buying at the peak.One example of this pattern is the launch of the ProShares Bitcoin Strategy ETF (BITO) in October 2021. This coincided with the peak of the bull market for cryptocurrencies and resulted in over $1 billion in trading volume. However, it also marked a top in the cycle, with prices subsequently experiencing a decline. On the other hand, the ProShares Short Bitcoin Strategy ETF (BITI), which allows investors to bet against Bitcoin, marked a local trough in June 2022 during the Luna collapse.It’s worth noting that this pattern is not exclusive to digital assets. When the Gold ETF (GLD) was introduced in November 2004, it initially opened at around $45 but dropped to approximately $41 by May 2005. However, over the following seven years, it saw an impressive 268% increase in value.Overall, the launch of Bitcoin-focused ETFs reflects the classic market psychology of anticipation and reaction. Investors should be aware of this pattern and consider the potential implications when making investment decisions.