Bitcoin Liquidity Across Exchanges Remain Low, Will BTC ETF Providers Face Challenges?
Summary
Medici CEO Edward Boyle is concerned about low Bitcoin liquidity on major spot exchanges like Binance and Coinbase, which could pose challenges for Bitcoin ETF providers. The collapse of FTX exacerbated the liquidity problem, impacting market makers and causing fear, uncertainty, and doubt in the market. Boyle believes that ETF providers may struggle to buy Bitcoin without significantly impacting prices, potentially slowing down the uptake of spot ETFs. However, the approval of these derivatives could improve overall liquidity by attracting new institutional investors. Optimists expect Bitcoin to rise above $45,000 and even $69,000 with the SEC's authorization of the first spot Bitcoin ETF in the U.S.
