While the broader crypto industry is reveling in the euphoria of spot Bitcoin ETFs, market expert Jim Bianco believes the new offering is a huge mistake.
BTC ETF is a big mistake
Jim Bianco, president and macro strategist at Bianco Research, LLC, has expressed his displeasure with the launch of spot Bitcoin ETFs. Amid this criticism, he praised the prospects of Decentralized Finance (DeFi) as an alternative in the financial landscape. He also noted that the Bitcoin ETF product can achieve higher prices for the flagship cryptocurrency Bitcoin, but not up to $1 million predicted from Bitcoin Stock-to-Flow (S2F) model developer PlanB.
Bianco called the recognition of BTC ETFs an admission of failure, citing that it was a way to “suck cryptocurrencies into the current system.” For the macro strategist, reaching a Bitcoin price of up to $1 million requires the system to innovate or even develop an alternative system.
Ultimately, he sees the spot Bitcoin ETF as a way to give up, and also the fact that the Securities and Exchange Commission (SEC) may oppose the offering in the future, as it did with gold.
See how the Bitcoin ETF is thriving
Bianco's sentiment comes at a time when the spot Bitcoin ETF market is outperforming many other assets in the financial market.
It recently surpassed 3,400 existing ETFs with a weekly inflow of up to $2.3 billion. On Friday, spot Bitcoin ETFs experienced one Net inflow of $323.90 millionAnd considering the total net inflows the ecosystem has seen, up to 100,000 BTCs have moved into spot Bitcoin ETFs since launch.
Only BlackRock's IBIT recorded up to Net inflows of $5 billion, far outperforms its competitors. Looking at the volume of inflows recorded by BlackRock and Fidelity, it is evident that the two asset management firms are leading the Bitcoin ETF market, giving the industry a major jump comparable to the broader financial market ETFs.
Grayscale is still struggling with the volume of outflows from its GBTC. These outflows have raised several questions among crypto enthusiasts, but in recent days the outflows from the company's BTC ETF started to slow down.
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