Eric Balchunas, Senior ETF Analyst at Bloomberg, believes that Bitcoin’s price could be hovering around $20,000 without the support of exchange-traded funds (ETFs). In a conversation with Coindesk, Balchunas emphasized the significant role ETFs have played in stabilizing Bitcoin’s price, particularly in the face of market challenges.
He asserted that ETFs, including those launched by BlackRock and Grayscale, have been essential in preventing a more drastic decline in Bitcoin’s price. Balchunas went on to say that these ETFs are “nothing short of a godsend” for the cryptocurrency market.
These comments come amidst significant outflows in the cryptocurrency market. On August 14th, Bitcoin spot ETFs experienced a net outflow of $81.363 million, with Grayscale’s Bitcoin Trust GBTC leading the outflows at $56.8658 million. Meanwhile, Franklin ETF EZBC and BlackRock ETF IBIT recorded inflows of $3.4185 million and $2.6836 million, respectively.
Ethereum ETH/USD spot ETFs, on the other hand, experienced a net inflow of $10.7736 million, despite Grayscale’s ETHE seeing an outflow of $16.9465 million. BlackRock’s ETHA and Fidelity’s FETH ETFs saw inflows of $16.1332 million and $6.6493 million, respectively.
Balchunas highlighted the crucial timing of these ETF launches, especially considering the ongoing challenges faced by the cryptocurrency market. He suggested that without the support of ETFs, Bitcoin’s price could have plummeted further, exacerbating market volatility.
The upcoming Benzinga’s Future of Digital Assets event on November 19th will provide a platform for further discussion on the role of ETFs and other financial products in shaping the future of digital assets. This event will offer valuable insights into the ongoing dynamics of the cryptocurrency market and the influence of ETFs on its stability and growth.
