Bitcoin ETF accounts for 4.04% of Bitcoin market capitalization! Will Wall Street control BTC in the future?

The U.S. Securities and Exchange Commission (SEC) is giving traditional financial institutions more opportunities to invest in Bitcoin after approving a Bitcoin spot exchange-traded fund (ETF) in January. The organization's assets are in the hundreds of billions of dollars. This approval brought more attention to Bitcoin, and since then there has been continued inflow into the Bitcoin market, bringing incremental funding to the cryptocurrency. This also reflects the interest of traditional financial institutions in Bitcoin and the cryptocurrency market

Bitcoin ETF accounts for 4.04% of BTC market capitalization

According to SoSoValue data, as of March 7, the Bitcoin spot ETF The total net asset value has reached 53.11 billion U.S. dollars, the net asset ratio is 4.04%, and the historical cumulative net inflow has reached 8.89 billion U.S. dollars.

10 Bitcoin ETFs’ daily trading volume breaks a new high of $10 billion

Bitcoin recently exceeded $69,000 and hit a new all-time high. According to monitoring data from Bloomberg ETF analyst Eric Balchunas, 10 Bitcoin spot ETFs reached a daily trading volume of US$10 billion on March 6, setting a new historical record.

Among them, BlackRock’s IBIT ($3.703 billion), Fidelity’s FBTC ($2.028 billion), Bitwise’s BITB ($294 million) and ARK/21Shares’ ARKB ($484 million) have also entered the market. Set a new high in single-day trading volume. In this regard, Eric Balchunas said: ETF fluctuations are closely related to trading volume, so it is not completely surprising, and these numbers are simply a fantasy for an ETF that was born less than two months ago.

Will Bitcoin spot ETF surpass gold ETF?

Looking to the future, Eric Balchunas predicted this week that if the growth of Bitcoin spot ETFs maintains this rate, adding $10 billion per month, Bitcoin spot ETFs will surpass the size of gold ETFs this summer. This may seem crazy, but it could very well happen if the Bitcoin price meets the conditions.

Bitcoin ETF deviates from blockchain ideals?

However, the rapid development of Bitcoin spot ETFs since its listing has some people in the encryption industry worried about this, claiming that ETFs may lead to more centralization of the encryption industry.

According to Cointelegraph, Andy Bromberg, CEO of wallet developer Eco, said that ETFs may lead to traditional financial institutions exerting excessive influence on the crypto market.

"The fact is, when you buy these Bitcoin ETFs, you give Wall Street money to buy Bitcoin, they own the Bitcoin, and you own a piece of paper that says you own a stake in it, which "It departs from the ideals on which Bitcoin was founded." In this world, if everyone entering the industry cared and thought about price rather than the actual use of the technology, they would buy these Bitcoin ETFs. One day, these Wall Street institutions will own 70% of the Bitcoins in circulation, and I'm not so sure that's what we want to build. ”

Lucas Henning, chief technology officer of the Suku Wallet development team, also criticized the Bitcoin ETF. Henning claimed that the ETF will not be able to attract the public in the long term because most cryptocurrencies and protocols other than Bitcoin are to be launched if they are to be launched. ETF, will not be approved by the SEC at all.

“Once something is done, like it is now done with the Bitcoin ETF, people tend to ask the question: “What’s next?” Now what might be next? It’s an Ethereum ETF. If this is completed, people will naturally ask questions like: Will we have access to the Ethereum DeFi protocol? Do we get those great dividends and interest rates and everything possible? The answer is probably "no". ”

The above is the detailed content of Bitcoin ETF accounts for 4.04% of Bitcoin market capitalization! Will Wall Street control BTC in the future?. For more information, please follow other related articles on the PHP Chinese website!