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Are ‘ETF Paper Bitcoins’ Suppressing BTC Prices? Analyst Provides Answers Newsbtc 28 Eki 2024

Are ‘ETF Paper Bitcoins’ Suppressing BTC Prices? Analyst Provides Answers 📊

Fred Krueger, a crypto hedge fund investor, addresses concerns over US spot Bitcoin ETFs and their alleged impact on BTC prices in his YouTube video. He aims to dispel FUD surrounding "paper Bitcoin"—the fear of ETFs selling Bitcoin they don't possess—and explain why BTC's price hasn't surged dramatically, despite significant ETF purchases.

Krueger points out historical cases like Mt. Gox and QuadrigaCX, where exchanges sold non-existent Bitcoin, contributing to current apprehension about ETFs. However, he argues that ETFs managed by established financial institutions operate differently, with stringent regulatory oversight.

He highlights leading ETFs, IBIT and FBTC, and their compliance with regulations, including regular audits and asset verification by third-party custodians like Coinbase and Fidelity Digital Assets. Krueger suggests that BlackRock and Fidelity have a vested interest in maintaining their reputation and would not risk credibility by selling non-existent Bitcoin.

Krueger refutes the idea of "paper Bitcoin," citing that IBIT holds 403,000 Bitcoins and FBTC 185,000, totaling almost 3% of the world's Bitcoin. He notes these holdings are verifiable and transparent.

Addressing BTC's price stagnation, Krueger mentions that Bitcoin has grown by 60% since ETFs' introduction, with a $600 billion increase in market cap. He attributes moderate price growth to selling pressures, including sales by Germany, Mt. Gox, and FTX. He speculates BTC could reach $90k absent these influences.

Kaynak: www.newsbtc.com ↗

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