Are ‘ETF Paper Bitcoins’ Suppressing BTC Prices? Analyst Provides Answers
Fred Krueger, an investor at 2718.fund, discussed concerns about US spot Bitcoin ETFs in a YouTube video. He addressed fears regarding "paper Bitcoin," the idea that ETFs might sell Bitcoin they do not own, and explained why Bitcoin's price has not surged despite ETF purchases. Historical cases like Mt. Gox and QuadrigaCX have fueled skepticism about ETFs. Krueger emphasized that regulated ETFs, such as BlackRock's IBIT and Fidelity's FBTC, operate under strict oversight, including third-party custodians like Coinbase and Fidelity Digital Assets. He stated these ETFs hold actual Bitcoin, with IBIT holding approximately 403,000 and FBTC about 185,000, totaling nearly 3% of the world's Bitcoin. Despite a 60% increase in Bitcoin's price since ETF introduction, selling pressures from entities like Germany and FTX have moderated growth. Krueger speculated that without these sales, Bitcoin could be priced around $90,000. As of the latest update, Bitcoin traded at $68,752.
