Premium Invest Hub
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
  • Economy
Popular Topics
  • Occupied West Bank rocked by day of violence as gunmen kill three Israeli settlers and reprisal attacks reported
  • Azerbaijan’s leader accuses Russia of passenger jet crash ‘cover up’ in blistering new attack on neighbor
  • Spanish woman killed by elephant in Thailand while bathing animal, police say
  • US adds Chinese tech giants to list of companies allegedly working with China’s military
  • Bad news for homebuyers in the Northeast and Midwest

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    Premium Invest Hub
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Economy
    • Investing

    Bitcoin ETF Inflows Could Trigger a ‘Sell-Side Liquidity Crisis,’ Warns CryptoQuant

    • March 12, 2024

    Institutional inflows into spot Bitcoin (BTC) ETFs could lead to a “sell-side liquidity crisis” by September, according to industry analyst Ki Young Ju, CEO of on-chain analytics platform CryptoQuant. 

    In a thread on X, Ki predicted a watershed moment in BTC supply within the next six months.

    He said that the rise of Bitcoin as an institutional investment is just beginning, with spot Bitcoin ETFs gaining significant traction in the United States. 

    Currently holding close to $30 billion, BTC ETFs have experienced the most successful launch in the history of ETFs.

    However, if this trend continues, it could create a new phenomenon where the demand for Bitcoin surpasses the available supply, effectively creating a Bitcoin ETF liquidity crisis. 

    Bears Struggle as Spot Bitcoin ETF Inflows Persist


    Ki emphasized that as long as spot Bitcoin ETF inflows persist, the bears in the market will struggle to gain the upper hand. 

    He pointed out that ETFs alone accumulated over 30,000 BTC in the previous week, while exchanges and miners hold approximately 3 million BTC, with US entities alone holding 1.5 million BTC. 

    “Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities,” he continued.

    “At this rate, we’ll see a sell-side liquidity crisis within 6 months.”

    This scenario would create a scarcity of Bitcoin available for sale. 

    #Bitcoin is currently in the price discovery phase.

    Once a sell-side liquidity crisis happens, its next cyclical top may exceed our expectations due to limited sell-side liquidity and thin orderbook.

    This could occur once accumulation addresses reach around a total of 3M BTC. pic.twitter.com/HgwGbHR8fL

    — Ki Young Ju (@ki_young_ju) March 12, 2024

    The Grayscale Bitcoin Trust (GBTC) is also bucking the trend, experiencing daily outflows of around $500 million. 

    Despite these outflows, the value of GBTC’s BTC holdings has remained relatively stable due to Bitcoin’s price appreciation since the ETF launch in January.

    When the tipping point of ETF demand is reached, Ki predicts that the impact on Bitcoin’s price may exceed market expectations. 

    A sell-side liquidity crisis would limit the availability of sellers and result in a thinner order book, potentially leading to a higher cyclical top for the cryptocurrency.

    Ki also highlighted the ongoing uptrend in BTC held by “accumulation addresses,” which are wallets that receive only inbound transactions. 

    However, these holdings would need to double before the crisis sets in, as Bitcoin’s recent surge to new all-time highs has caused accumulation address holdings to cool off.

    Market Awaits Bitcoin ETF Options


    Last week, the US Securities and Exchange Commission (SEC) delayed the decision to approve options trading on spot Bitcoin ETFs.

    The agency extended the response deadline for the Cboe Exchange and the Miami International Securities Exchange, both of which filed bids to offer options on Bitcoin ETFs. 

    Analysts, such as VettaFi’s Dave Nadig, predict that the introduction of BTC ETF options will attract hedge fund players who were not previously involved in the crypto ecosystem, providing them with an opportunity to participate in the market.

    Multiple leveraged Bitcoin ETFs are also under consideration by the SEC, including filings from asset manager Direxion for five inverse and long spot BTC ETFs, ProShares’ five leveraged Bitcoin funds, and REX Shares’ six leveraged ETFs.

    The post Bitcoin ETF Inflows Could Trigger a ‘Sell-Side Liquidity Crisis,’ Warns CryptoQuant appeared first on Cryptonews.

    Previous Article
    • Investing

    Biden’s Budget Proposal for 2025 Rekindles Discussion of 30% Electricity Tax for Crypto Miners

    • March 12, 2024
    View Post
    Next Article
    • Investing

    Near Protocol Matches Dogecoin Price Performance in March, Is Green Bitcoin the Next Eco-Friendly Crypto To Explode?

    • March 12, 2024
    View Post

      Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


      By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

      Popular Topics
      • Occupied West Bank rocked by day of violence as gunmen kill three Israeli settlers and reprisal attacks reported
      • Azerbaijan’s leader accuses Russia of passenger jet crash ‘cover up’ in blistering new attack on neighbor
      • Spanish woman killed by elephant in Thailand while bathing animal, police say
      • US adds Chinese tech giants to list of companies allegedly working with China’s military
      • Bad news for homebuyers in the Northeast and Midwest
      Copyright © 2025 premiuminvesthub.com | All Rights Reserved
      • About us
      • Contact us
      • Privacy Policy
      • Terms & Conditions

      Input your search keywords and press Enter.