Bloomberg Analyst: Misjudging Bitcoin ETF can reduce market volatility; high volatility and high-risk attributes will still persist

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BTC-0,49%

Odaily Planet Daily reported that senior ETF analyst Eric Balchunas from Bloomberg posted on X platform that his previous assessment that the investor structure of Bitcoin ETFs would be stronger than market expectations still largely holds. However, his earlier expectation that ETF capital would reduce market volatility has been proven wrong. Eric Balchunas stated that he initially believed retail ETF funds would replace high-risk retail investors before the FTX incident, thereby enhancing market stability. However, he did not fully consider the selling pressure caused by early holders (OG) reducing their positions at high levels. He also pointed out that Bitcoin’s approximately 450% increase over two years is itself a potential risk signal, as rapid gains are often accompanied by high volatility. Therefore, Bitcoin’s high volatility and high-risk asset attributes are expected to persist in the foreseeable future.

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