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

After approving a Bitcoin spot exchange-traded fund (ETF) in January, the U.S. Securities and Exchange Commission (SEC) opened up investment opportunities for traditional institutions with hundreds of billions of dollars in assets under management. Bitcoin’s path to compliance. This decision has continued to attract large inflows into the Bitcoin market over the past two months, bringing increased capital to Bitcoin.

Bitcoin ETF accounts for 4.04% of BTC market value

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

The daily trading volume of 10 Bitcoin ETFs breaks a new high of 10 billion US dollars

Bitcoin breaks through 69,000 US dollars, setting a new all-time high, according to Bloomberg ETF analyst Eric Balchunas monitors that the daily trading volume of 10 Bitcoin spot ETFs reached US$10 billion on March 6, once again hitting a record high. This data shows that investor interest in Bitcoin ETFs continues to increase and that market demand for cryptocurrencies remains strong. As the price of Bitcoin continues to rise, investors are paying more and more attention to digital assets. Bitcoin is a popular cryptocurrency 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 set new highs 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?

People in the crypto industry are concerned about the rapid development of Bitcoin spot ETFs, fearing that this may lead to greater concentration of the crypto 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". ”

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