Bitcoin ETFs Are Removing Liquidity From the Free Market
Kir says that ETFs are a good development. I disagree — I believe that, for the crypto market overall, this is actually harmful. Bitcoin ETFs and passive strategies are pulling BTC out of the public, free market liquidity pool.
In my view, the rise of spot Bitcoin ETFs concentrates supply off-exchange into custodial vehicles, reducing on-chain circulation and weakening price discovery. That shift in market structure creates concentration and counterparty risks for Bitcoin and the broader crypto market.
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