Bitcoin Could Be At $20,000 In This Market, ETFs Are 'A Godsend,' Analyst Says

Bitcoin‘s BTC/USD price could be hovering around $20,000 without the support of exchange-traded funds (ETFs), according to Eric Balchunas, Senior ETF Analyst at Bloomberg.

What Happened: In a conversation with Coindesk on Thursday, Balchunas outlined why ETFs have played a critical role in stabilizing Bitcoin’s price.

“If you take the ETFs out of the picture, the price of Bitcoin is like $20,000,” he noted, suggesting that the introduction and support of ETFs, such as those from BlackRock and Grayscale, have prevented a steeper decline.

“The ETFs should be seen as nothing short of a godsend,” Balchunas added.

The comments come as the cryptocurrency market faces significant outflows, with Bitcoin spot ETFs recording a total net outflow of $81.363 million on Aug. 14

Grayscale’s Bitcoin Trust GBTC led the outflows with a substantial $56.8658 million, while Franklin ETF EZBC and BlackRock ETF IBIT saw inflows of $3.4185 million and $2.6836 million, respectively, according to data from SoSo Value.

Meanwhile, Ethereum ETH/USD spot ETFs experienced a net inflow of $10.7736 million, despite Grayscale‘s ETHE seeing an outflow of $16.9465 million, data shows.

Also Read: Crypto Heists Surge 84% In 2024 With Over $1.58B Stolen, Says Report

BlackRock‘s ETHA and Fidelity‘s FETH ETFs recorded inflows of $16.1332 million and $6.6493 million, respectively.

Balchunas highlighted the timing of the ETF launches as crucial, especially in light of ongoing challenges such as the Mt. Gox bankruptcy and Germany selling its Bitcoin stack.

He suggested that without the support from ETFs, Bitcoin’s price could have dropped significantly lower, exacerbating the market’s volatility.

What Happened: As the crypto market continues to navigate these dynamics, the upcoming Benzinga’s Future of Digital Assets event on November 19 will offer a platform for further discussion on the role of ETFs and other financial products in shaping the future of digital assets.

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