Are ETFs About to Beat Satoshi Nakamoto?
Don't be surprised but I'm thinking before this year ends, the legendary Satoshi Nakamoto, the one behind Bitcoin's creation might soon lose the title of biggest holder of Bitcoin.
Nakamoto currently has the largest stash of Bitcoin and he's not going have the description and it's all thanks to Bitcoin ETFs.
I think this will happen around the Christmas season.
Bitcoin ETFs companies could become the biggest holders. I'm not telling you this out of my ass I got this information from Eric Balchunas. He made these bold predictions so if you think it's a lie don't fight me, haha.
938,533 BTC, that's how much is in the Bitcoin ETF and this also shouldn't surprise you because consider that ETFs are bringing in nearly $20 billion so far.
So my question is why hasn't this made the price of Bitcoin explode? Because right now the price is still hovering around $65k and or course it's not like that's bad or anything but I really expected something more dramatic with all this money flowing in.
But Balchunas made this point that that if ETFs are buying then others must be selling at the same rate which may be why the price hasn't gone up. That's pretty much deflating the coin right?
I can't even celebrate these massive ETF inflows if it’s just balancing out with people cashing out. That's my problem with the crypto market.
So the bottom line is that ETF flows affect the price, but not as much as I thought. A coefficient of 0.30 is not exactly mind-blowing, but it’s growing so there's a bit of hope there. Maybe in a few months, we’ll see a stronger connection.
My only fear is that ETFs may be shifting the way Bitcoin is perceived right now? If these big companies gain that much power, Bitcoin could turn into another traditional asset.
Bitcoin is supposed to be a decentralized currency and not funds for institutional investors.