Decimal Digital founder Henry Robinson predicts a possible Bitcoin supply shock amid growing investment inflows into spot Bitcoin ETFs.
In an exclusive comment to crypto.news, Robinson notes that Bitcoin ETFs are groundbreaking and poised to revolutionize the industry by opening up unprecedented investment opportunities. According to him, these financial instruments will attract significant new investments in Bitcoin from various sectors, including pensions, endowments, insurance companies, sovereign wealth funds and trusts.
Robinson's finding follows the approval of several Bitcoin ETFs by the US Securities and Exchange Commission, which has led to a trading frenzy. A staggering $500 million was reportedly traded within the first 20 minutes.
Despite the initial trading excitement, he offers a cautious assessment of Bitcoin's availability to meet growing demand. A potential “Bitcoin supply shock” could be on the horizon, which could lead to wild price fluctuations.
Additionally, Robinson questions the perceived value of ETFs, claiming that they do not offer a significant advantage over self-custody, particularly for long-term holders. He predicts a decline in positions due to fee issuances could drag on for years, potentially reducing the appeal of ETFs as Bitcoin adoption increases and self-custody becomes more important among institutions.
Following the SEC's historic announcement yesterday, BTC hit $49,000 for the first time in almost two years. However, the price quickly fell to the $46,000 zone, reflecting Henry Robinson's forewarning of a possible supply shock.
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