The potential impact of the first spot Bitcoin exchange-traded fund (ETF) in the United States on the largest cryptocurrency remains a hot topic. Adam Back, CEO and founder of Blockstream, is among those who believe that inflows into spot Bitcoin ETFs will have a massive effect on the cryptocurrency.
Back, a veteran in the Bitcoin space and creator of the proof-of-work system Hashcash, which is integral to BTC mining, has claimed on social media that the effect of spot ETFs could be 30 times greater than the anticipated Bitcoin block reward halving scheduled for April 18, 2024. He suggests that traditional finance (TradFi) momentum buyers, driven by broker sentiment, could initiate a cycle of buying, news creation, and further buying, leading to price increases.
As a well-regarded figure in the crypto community, Back also mentioned that Bitcoin’s fundamentals are currently “off the charts,” indicating an early bull market. He highlighted the increasing ETF volume, noting that Fidelity’s FBTC saw more inflows than BlackRock’s IBIT in the past two days, which suggests excellent access for new investors.
Back also addressed recent Bitcoin price drops, attributing them to fear, uncertainty, and doubt (FUD) rather than structural net selling. He believes that there are no significant sellers left, and that panic selling by individuals hoping to buy back at lower prices often leads to poor timing and eventually buying back at higher levels.
In summary, Adam Back emphasizes the transformative potential of spot Bitcoin ETFs on the market, surpassing even significant events like the Bitcoin halving, and comments on the current market sentiment and investor behavior in the face of FUD.