Spot Bitcoin ETFs have recently garnered attention with substantial market inflows, accumulating over $5 billion and coinciding with Bitcoin's 23% price rally. Yet, macro investment researcher Jim Bianco contends these ETFs don't spark Bitcoin market growth.
Bianco claims Spot ETFs bring no new investments, only recycling existing funds. Despite outstanding performances of these ETFs, Bitcoin hasn't surpassed its all-time high. He argues high inflows should have propelled Bitcoin beyond $100,000.
Unlike Spot Bitcoin ETFs, Gold ETFs, with $6 billion inflows, pushed gold prices by 25%, attributed to "new money." Recycled funds from exchanges dominate Spot Bitcoin ETF investments, diminishing their impact on Bitcoin growth.
Bianco references declining Bitcoin retail traders on Coinbase and the disparity between average Spot BTC ETF and Gold ETF trades, linking it to institutional investments. He warns about increased TradFi influence, conflicting with crypto's decentralization ethos.
Bloomberg analyst Eric Balchunas counters Bianco’s view, asserting Spot Bitcoin ETFs significantly influence Bitcoin's price surge, emphasizing their affordability, liquidity, and alignment with reputable brands.
