Bitcoin ETFs Fail to Boost Price, Jim Bianco Cites Centralized Flows

• Bitcoin’s ETF inflows may not boost its price due to a lack of fresh market capital.
• Analyst Jim Bianco argues traditional finance’s Bitcoin control poses a warning sign.
• Bitcoin’s ETF trades show limited effect, signaling price stagnation despite market expectations.

Bitcoin exchange-traded funds (ETFs) have not boosted Bitcoin prices as expected, sparking concerns over their effectiveness. Jim Bianco of Bianco Research argues that Bitcoin’s current concentration within traditional finance isn’t “something to be celebrated,” raising what he calls a “red flag” for cryptocurrency investors. Despite several anticipated price drivers, such as Federal Reserve rate cuts and the launch of major ETFs, Bitcoin has yet to achieve a new all-time high.

Bianco highlights that Bitcoin ETF inflows largely consist of capital already present within the crypto market, circulating through on-chain and centralized exchanges. According to him, this factor contrasts sharply with gold ETF inflows, which receive consistent fresh investments, driving the precious metal’s market value. As a result, he suggests Bitcoin’s ETF growth lacks the fresh capital necessary to impact prices significantly, citing the need for more widespread adoption from traditional investors rather than only shifting assets within existing markets.

Bitcoin Price Performance Fails Expectations

Bianco points out that, based on current bullish signals, Bitcoin’s price should have already reached $100,000, especially after the Federal Reserve’s rate cuts in September. However, recent data reveals that even the record-breaking inflows from BlackRock’s iShares Bitcoin Trust (IBIT) have yet to drive Bitcoin to a new peak. This discrepancy has led Bianco to question the real impact of ETFs on the cryptocurrency’s value, noting that Bitcoin recently dipped to $67,000 despite the substantial market interest.

Bitcoin’s ETF Trades Show Limited Movement

Further intensifying his argument, Bianco observes that Bitcoin’s ETF trades are only valued at $16,000 per share. This statistic implies that ETF-driven trades may not signify increased market activity but rather the redirection of funds from retail accounts to ETFs. Consequently, Bianco remains skeptical of any substantial price boost from Bitcoin ETFs alone.

Despite Bianco’s critical stance, some Bitcoin advocates defend the digital asset’s recent performance. Fred Krueger, a prominent Bitcoin maximalist, contends that Bianco’s caution lacks evidence, pointing out that Bitcoin’s price has risen approximately 65% year-to-date, outperforming gold. However, Bianco continues to highlight that ETF inflows fail to attract new capital essential for sustainable growth.