Eric Balchunas said that BTC holders are selling their tokens.
Despite billions of inflows into Bitcoin, the price of the coin remains stagnant.
An analyst stated that ETFs hold only 5% of supply, while BTC whales hold 95%.
In a series of conversations on X platform, Frank Makrides, an investor, questioned Bloomberg ETF analyst Eric Balchunas about why the price of Bitcoin (BTC) remained range bound despite record inflows into the spot BTC exchange-traded funds (ETFs).
Eleven spot Bitcoin ETF applications were approved in the United States by the Securities and Exchange Commission earlier this year and have since attracted billions of dollars in inflows, with BlackRock leading the demand.
Makrides also called for Bitcoin ETF issuers BlackRock and Fidelity, along with other asset management firms and their market maker, JPMorgan Chase, to “show us exactly what they’re doing with their funds.”
On the other hand, Balchunas was swift to reply, stating, “I’ve said it before and I’ll say it again, the call is coming from inside the house” and added:
“This is not ETFs doing, obvious because they buying like crazy lately, it’s bitcoin holders selling or leveraged flushers or whatever. Time and again ETFs go on flow-a-thons and its met with selling from other holders.”
Another analyst, Jimie, commented on Balchunas’ post, explaining that spot Bitcoin ETFs worldwide hold around 5% of the total BTC circulating supply while the rest is held by whales. He noted that “ETF inflows are significant and yet minimal compared to the volume of BTC being traded and sold by these groups,” stating that for every buyer, there needs to be a seller.
The post Bitcoin ETFs Are Hot, But Prices Are Not: Here’s Why appeared first on Coin Edition.