US Bitcoin exchange-traded funds (ETFs) could be a threat to on-chain adoption and liquidity, warns Jim Bianco, founder of Bianco Research. He suggests that ETFs are pulling on-chain liquidity into traditional finance, evidenced by Coinbase's Q1 financial results. Despite retail trading volume being half of 2021 levels, revenue stood at $1.64 billion, with institutional trading volume increasing to $256 billion in Q1 from $215 billion in Q1 2021. Bianco also notes that ETFs have failed to attract baby boomers, with over 85% of the underlying BTC held by retail investors.