TechFlow News: On February 7, Eric Balchunas, Senior ETF Analyst at Bloomberg, posted a reflection on Bitcoin ETF fund structures on X. He stated that his earlier assessment—that Bitcoin ETF investor composition would be stronger than market expectations—remains largely valid. However, his prior expectation that ETF inflows would dampen market volatility has proven incorrect. Balchunas explained that he originally believed retail ETF funds would replace the highly speculative retail investors active before the FTX incident, thereby enhancing market stability. Yet he underestimated the selling pressure generated by early holders (“OGs”) collectively reducing their positions at elevated price levels. He also noted that Bitcoin’s roughly 450% rally over the past two years itself signals potential risk: rapid appreciation often coincides with heightened volatility. Thus, Bitcoin’s status as a high-volatility, high-risk asset is likely to persist in the foreseeable future.
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