Decimal Digital founder Henry Robinson projects a potential Bitcoin supply shock amidst the growing investment inflow in spot Bitcoin ETFs.
In an exclusive comment to crypto.news
Robinson
remarks that Bitcoin ETFs are a game-changer, poised to revolutionize the industry by unlocking unprecedented investment opportunities. According to him, these financial instruments will attract substantial new investments into
Bitcoin
from diverse sectors, including pensions, endowments, insurance companies, sovereign wealth funds, and trusts.
Robinson’s insight comes following the U.S. SEC’s approval of several
Bitcoin ETFs
, which has sparked a trading frenzy with reports indicating a staggering
$500 million
traded within the first 20 minutes.
Despite the initial trading excitement, he offers a cautionary perspective on the availability of Bitcoin to meet burgeoning demand. There might be a potential “Bitcoin supply shock” on the horizon that could result in violent price fluctuations.
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Furthermore, Robinson challenges the perceived value of ETFs, asserting they offer no significant advantage over self-custody, especially for long-term holders. He predicts a bleed in positions due to fee emissions, which could span years, potentially diminishing ETFs’ attractiveness as Bitcoin adoption escalates and self-custody gains traction among institutions.
Following the SEC’s historic announcement yesterday, BTC reached $49,000 for the first time in almost two years. However, the price quickly dropped to the $46,000 zone, reflecting Henry Robinson’s forewarning of a potential supply shock.
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