Bitcoin ETFs Impact on BTC Volatility Explained by Mark Yusko
Hedge fund expert Mark Yusko suggests that the introduction of Bitcoin exchange-traded funds (ETFs) has granted Wall Street a degree of influence over Bitcoin’s price movements.
During a recent discussion with cryptocurrency podcaster Scott Melker, Yusko of Morgan Creek noted a lack of significant selling pressure in both the spot and ETF markets.
Yusko highlighted that the correction in Bitcoin’s price is primarily driven by entities engaging in heavy shorting of BTC in the futures market. He believes that institutional players are shorting Bitcoin to artificially drive down its price, enabling them to accumulate more coins at lower prices.
Yusko elaborated on the mechanics of ETFs, emphasizing that these instruments have limited trading windows, typically at the end of the day. He suggested that large orders, such as those from entities like BlackRock, could prompt strategic selling of Bitcoin to suppress prices before executing the order.
He explained, “So it’s logical if you got a big order, you know you got a big order, you’re BlackRock and you have to fill that order with Bitcoin, you don’t want the price high. You want the price low.”
Yusko further highlighted the common practice on Wall Street of strategically shorting assets to accumulate them at discounted rates, emphasizing that this approach is not unique to Bitcoin.
As of the time of reporting, Bitcoin is trading at $57,629, reflecting a 2.78% decrease over the past 24 hours.
Yusko’s insights shed light on the intricate dynamics at play in the cryptocurrency market, where traditional financial strategies intersect with the unique characteristics of digital assets.
