Following the approval of the United States’ first spot Bitcoin exchange-traded fund (ETF), the benefits of the ETF on the largest cryptocurrency continue to be a topic of debate. Blockstream CEO and founder Adam Back is among those who believe that inflows into spot Bitcoin ETFs will have a massive impact on the largest cryptocurrency.
The Impact of Spot ETFs Could Be 30 Times Greater Than Block Reward Halving
Bitcoin veteran Back claimed on his personal account on the popular social media platform X that the impact of inflows into spot ETFs would be 30 times greater than the block reward halving (halving) expected to occur on April 18, 2024. In his comment, Back stated, “Many TradFi (traditional finance) momentum buyers are driven by broker sentiment. Here the price rises due to smart money. There is a process of buying, creating news, and buying more.”
For those who may not know, Back is an early Bitcoin investor and the inventor of Hashcash, a proof-of-work system later incorporated into the BTC mining process. He is a well-followed figure in the cryptocurrency world.
The Blockstream CEO also mentioned that the fundamentals of BTC are currently “off the charts,” stating, “We are in an early bull market. ETF volume is increasing (Fidelity’s FBTC saw more inflows in the last two days than BlackRock’s IBIT) which indicates extremely good new investor access.”
Expert Suggests Bitcoin Price Drop Due to FUD
Back evaluates that the recent decline in Bitcoin’s price may be due to fear, uncertainty, and doubt (FUD) rather than structural net selling. The inventor of Hashcash suggests, “There are no reasonable size sellers left,” and stated:
People can create their own bottoms, sell in fear, and hope to buy back lower, but weak hands tend to time this incorrectly on average, eventually buying back at higher levels.
