Bitcoin’s goal of creating a decentralized financial system may be challenged by ETFs “dragging money back into the TradFi world,” according to the macro researcher.
Despite promising to bring more baby boomers into Bitcoin, the United States spot Bitcoin exchange-traded funds (ETFs) could pose a greater risk to on-chain adoption and liquidity.
One of the biggest concerns with ETFs is how they could cannibalize on-chain liquidity, according to Jim Bianco, founder of macro research firm Bianco Research, who wrote in a May 19 X post:
The warning comes during a decisive week for Bitcoin (BTC) price, which is trading below a crucial resistance line. Bitcoin could rally to new all-time highs if it manages to decisively break above the $67,500 mark, Markus Thielen, the head of research at 10x Research.
