Bitcoin ETFs Are Influential, but They Are Not the Primary Force Driving the Market
Senior Bloomberg ETF analyst Eric Balchunas suggests that without the success of Bitcoin ETFs, the digital assets's price would hover around $20,000 instead of the current $60,000.
Bitcoin exchange-traded funds (ETFs) have seen strong demand in 2024, attracting a net inflow of over $17 billion.
According to Bloomberg ETF senior analyst Eric Balchunas, if not for the success of Bitcoin ETFs, the digital asset’s price would currently be around $20,000 rather than the present level of about $60,000. He attributes the bulk of Bitcoin’s price increase to ETF activity.
“Take the ETFs away from the picture and btc price is probably around $20k.”
However, I would have to disagree with Balchunas’s assessment. I have highlighted that the volume of Bitcoin ETFs is still quite small compared to the futures market, which plays a larger role in influencing Bitcoin’s price.
Futures trading volume has reached $74 billion as of Aug. 12, far exceeding the ETF trading volume of $1.3 billion, according to data from checkonchain.
I find myself agreeing more with the analysis of Checkmate, a respected Bitcoin analyst, who points out that the net capital flows in the Bitcoin market are around $12 billion per month, with long-term holder supply changes at about $1.6 billion, which are both much larger than any given ETF inflow or outflow per month.
In essence, while ETFs are influential, they are not the primary force driving Bitcoin’s market. As Checkmate puts it,
“At best, the ETFs are 20% of the influence. They are important, but not the driver.”
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.
The above is the detailed content of Bitcoin ETFs Are Influential, but They Are Not the Primary Force Driving the Market. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Undress AI Tool
Undress images for free

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics

Bitcoin's (BTC) exchange reserves have dropped to their lowest level since November 2018, reflecting a significant shift in market dynamics.

Onchain data analytical platform CryptoQuant has flagged a key Bitcoin (BTC) metric that suggests a potential 90% rally for the leading cryptocurrency.

Solidion Technology, Inc. (NASDAQ: STI), a leading provider of advanced battery materials, has announced a significant strategic allocation of Bitcoin within its corporate treasury.

In addition to surpassing earlier highs, Bitcoin has reached a critical price level of $92,000, which has strengthened its position in the current bullish cycle.

Veteran macro investor Luke Gromen believes Bitcoin (BTC) is set to outperform gold even without the backing of the US government.

Bitcoin ETF inflows and treasury adoption push institutional confidence and price growth. Reaching 3% of global wealth could propel Bitcoin's market cap to $20 trillion.

Prominent Bitcoin analyst Willy Woo recently shared his insights on social media platform X (formerly Twitter), forecasting Bitcoin's upcoming price movements.

Bitcoin has become a household name since its creation in 2009, capturing the attention of investors, technologists, and economists worldwide.