|
Feb 17
|
|
—
|
AVOID
|
Marcus Thielen
Founder and CEO, 10X Research
|
ETFs bought ~$54 billion worth of Bitcoin at an average price of $90,000. They are currently "underwater by 10 billion... literally 30 billion too long right now." Institutional investors are sensitive to PnL. As these positions remain underwater, the risk of redemptions increases. Redemptions force ETF issuers to sell spot Bitcoin, creating a negative feedback loop that suppresses price further. AVOID long exposure to Spot Bitcoin ETFs until the overhang clears or the $40k-$50k base is established. Institutional investors may have longer time horizons and refuse to sell, stabilizing the price. |
CoinDesk
Will Bitcoin Drop to $50,000 This Summer?
|