Bitcoin (BTC) Exchange-Traded Fund (ETF) Success Poured Cold Water on by Bianco Research

Jim Bianco of Bianco Research has poured cold water on the success of Bitcoin exchange-traded funds, arguing that the massive concentration

Bianco Research’s Jim Bianco has expressed skepticism over the success of Bitcoin exchange-traded funds (ETFs), arguing that the massive concentration of the largest cryptocurrency in traditional finance is not “something to be celebrated.” Rather, according to Bianco, this should be treated as a major red flag.

The analyst noted that, based on all the bullish catalysts, such as the massive ETF inflows and the Federal Reserve rate cut that occurred in September, the price of Bitcoin should have hit the $100,000 level months ago. However, this was not the case.

The price of Bitcoin failed to log a new all-time high earlier this week despite the record-breaking inflows recorded by BlackRock’s IBIT.

Bianco pointed out that the price of gold is significantly higher thanks to ETF inflows. According to the researcher, gold ETFs mostly receive fresh money, but Bitcoin ETF flows are largely “on-chain or centralized exchange money.” As a result, the Bitcoin price is having difficulty rising any higher.

“Spot BTC ETF trades are only $16k. This seems to be money shifting from former Coinbase retail accounts to the ETF, so it’s not new money,” he noted.

This analysis has, however, predictably attracted some backlash from Bitcoin enthusiasts. For example, Bitcoin maximalist Fred Krueger claimed that Bianco’s statement was not supported by the evidence. Furthermore, he noted that Bitcoin is up as much as 65% on a year-to-date basis, significantly outperforming the yellow metal.

The price of Bitcoin recently dipped to the $67,000 level.

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