Why Bitcoin’s Price Is Unfazed After the ETF Launch

Despite the launch of Bitcoin Exchange-Traded Funds (ETFs) by industry giants like BlackRock and Fidelity, Bitcoin’s price hasn’t shown a significant response.

Tepid Performance:

  • Prior to the ETF launch, Bitcoin reached a peak of $49,040 on January 11.
  • Currently, it’s hovering around $51,000, a modest increase of 4.3%.
  • Market observers are puzzled, considering the massive net inflows into Bitcoin ETFs.

CryptoQuant CEO’s Discovery:

  • Ki Young Ju, CEO of CryptoQuant, believes he has found the reason behind Bitcoin’s muted price action.
  • Over 700,000 BTC, worth approximately $35.6 billion, was transferred to Over-The-Counter (OTC) desks used by miners after the ETF approvals.

OTC Mechanism:

  • OTC desks facilitate direct transactions between two parties, unlike open exchanges.
  • Large volumes of Bitcoin can be traded without immediately affecting the market price.
  • ETF issuers are strategically purchasing Bitcoin via OTC desks to fulfill investor demand without triggering a price increase.


  • If the 700,000 BTC had been bought on the spot market, Bitcoin’s price would have likely surged higher.
  • The subdued price action is attributed to the strategic use of OTC transactions.

Potential Silver Lining:

  • Miners will have less Bitcoin to sell after the upcoming halving in April, while demand remains.
  • The finite OTC supply could lead to a supply shock when reserves are depleted.
  • Entities like BlackRock may need to buy Bitcoin on the open market, potentially driving up the price.

Current Market Situation:

  • As of press time, Bitcoin is trading at $51,030.