Crypto Expert Identifies ‘Major Issue’ With Spot Bitcoin ETFs
Daniel Roberts, co-CEO of Iris Energy, raised concerns about Spot Bitcoin ETFs due to Bitcoin's limited supply. He worries that if ETFs buy 30% of available Bitcoin and holders refuse to sell, there could be a problem acquiring more BTC for the ETFs. However, some argue that Bitcoin's price would increase, prompting some to sell. On the first day of trading, Spot Bitcoin ETFs recorded over $4.6 billion in trading volume, with Grayscale's GBTC accounting for half of it. BlackRock and Fidelity followed with $1 billion and $712 million, respectively. BlackRock may have benefited from large GBTC outflows, as investors may have moved to Spot Bitcoin ETFs with lower fees. ProShares Bitcoin Strategy (BITO) ETF broke its all-time volume record with $2 billion traded, possibly due to redemptions from BTC futures ETF investors moving to Spot Bitcoin ETFs, as predicted by analysts at K33.
