As a seasoned financial analyst with over two decades of experience in traditional markets, I find myself intrigued by the ongoing debate surrounding Bitcoin ETFs and their potential impact on Bitcoin’s price. Having witnessed countless market cycles and navigated through various regulatory landscapes, I am well-versed in understanding the dynamics that drive investor behavior.
Hunter Horsley, CEO of Bitwise, has responded to criticism that Bitcoin ETFs are contributing to the sustained price of Bitcoin below its current record high. This response comes as Bitcoin ETFs have been approaching Satoshi Nakamoto’s estimated 1.1 million BTC holdings, following three consecutive weeks of investments.
Bitwise CEO Says Spot Bitcoin ETFs Aren’t Selling
In a recent post on X, Hunter Horsley stated that contrary to the criticisms from the cryptocurrency community suggesting these funds could be the ones holding back the sale, they aren’t actually selling, which might explain why the leading crypto hasn’t established a new all-time high (ATH) despite assets such as stock markets and gold reaching record highs.
According to the Bitwise CEO’s remarks, Bitcoin ETFs are nearly managing over a million Bitcoins in assets. This large amount of Bitcoin held doesn’t seem to have significantly increased the price, indicating that some existing holders might be selling their coins.
Horsley stated that while there’s no one openly admitting it, the Bitcoin selling pressure isn’t coming from the ETFs. This viewpoint was also shared by Bloomberg analyst Eric Balchunas, who concurred with Bitwise CEO on the notion that Bitcoin ETFs are not the source of the selling pressure that is currently depressing Bitcoin prices.
In an X post, he stated that the “HODLers” are selling despite the amount of inflows that are coming into the Bitcoin ETFs. He added,
I personally don’t get it but hey it’s a free market.
As a researcher, I’d like to clarify a point often raised as a critique: that HODLers are the ones selling. Contrarily, data from CoinGape indicates that Bitcoin holds a unique position among cryptocurrencies, with its investors typically holding their coins for an average of four years and four months – the longest HODL period compared to other digital assets.
Bitcoin ETFs Are Closing In On Satoshi Nakamoto
According to the CEO of Bitwise, these Bitcoin Exchange-Traded Funds (ETFs) currently possess approximately 977,000 Bitcoin, worth around $65.25 billion, making up nearly 5% of the total circulating supply of Bitcoin. This accumulated value is fast approaching Satoshi Nakamoto’s reported net worth of 1.1 million Bitcoin.
As a crypto investor, it’s clear to see that BlackRock leads the pack with an impressive $26.98 billion in Bitcoin holdings under management through its IBIT Bitcoin ETF. The titan of asset management, BlackRock, is closely trailed by Grayscale, Fidelity, and Ark Invest, respectively. Interestingly, Bitwise finds itself in fifth position with net assets valued at $2.78 billion for its BITB ETF.
At present, these Bitcoin Exchange-Traded Funds (ETFs) are experiencing a significant surge in interest, with three consecutive inflows recorded. The largest intake this week was on October 25, totaling $402 million. Despite this growth trend, it’s important to note that the price of Bitcoin might dip below $60,000. This potential drop could be due to circumstances such as the ongoing Tether investigation, which could lead to a broad-based crypto selloff among both Bitcoin ETF investors and long-term holders (HODLers).
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2024-10-26 19:32