Over a billion flows into bitcoin ETFs, yet the price isn’t rising — an analyst explains why
Despite $1.4 billion flowing into Bitcoin ETFs recently, the spot price remains stagnant due to ETF mechanics causing a lag in actual spot buying.Summary
Analysts at Bitfinex suggest that the recent surge in demand for U.S.-listed spot Bitcoin ETFs, totaling $1.4 billion over five days, is not immediately translating into spot price appreciation. This discrepancy is attributed to the operational mechanics of ETFs, where Authorized Participants (APs) create new shares to meet demand before purchasing the underlying Bitcoin. APs may short ETF shares initially, delaying actual BTC purchases until later or the next business day. This lag means ETF growth reflects demand that hasn't hit the spot market yet, causing the Bitcoin price to feel "stuck" or suppressed. While this usually has minimal impact, significant gaps between ETF demand and real spot buying can cause temporary market mispricing.
(Source：CoinDesk)