Henry Robinson, founder of Decimal Digital, warns of a potential Bitcoin supply shock as the excitement around spot Bitcoin ETFs grows. Robinson sees Bitcoin ETFs as a game-changer, set to attract significant new investments from various sectors following the U.S. SEC’s approval of several Bitcoin ETFs. The initial trading frenzy saw reports of $500 million traded within the first 20 minutes.
However, Robinson urges caution, pointing out the risk of a potential “Bitcoin supply shock” due to the increasing demand. He challenges the perceived value of ETFs, arguing that they offer no significant advantage over self-custody, especially for long-term holders. Robinson predicts a gradual reduction in ETF attractiveness as Bitcoin adoption rises and self-custody gains traction among institutions.
After the SEC’s announcement, Bitcoin briefly reached $49,000, marking its highest point in almost two years, but the price quickly retreated to the $46,000 zone. Robinson’s concerns about a potential supply shock reflect the volatile nature of the cryptocurrency market.
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