Spot Bitcoin ETFs Would Reduce Power of Whales and Increase Stability: Nansen Analyst
The cryptocurrency landscape is poised for a major change with the recent approval of spot Bitcoin (BTC) exchange-traded funds (ETFs).
Aurelie Barthere, Principal Research Analyst at Nansen, believes the approval will specifically impact crypto whales, who control a large share of the current token supply and wield unmatched influence in spot markets.
“We know that crypto token ownership is very skewed, with ‘whale’ wallets owning a large share of the token supply,” Barthere said in a recent interview with Cryptonews.com.
“Any change in that structure would probably reduce price volatility in the long term, intuitively.”
She also opined that the arrival of ETFs will bring more liquidity to the spot markets, which could lead to a more stable market.
Last week, the SEC granted approval to 11 spot Bitcoin ETFs, marking a significant departure from more than a decade of regulatory opposition.
The decision comes more than a decade after the initial filing for a crypto-based ETF, a financial product designed to track the performance of various assets such as commodities and equities.
The newly approved ETFs will specifically track the spot market price of Bitcoin.
Wall Street giants such as BlackRock, Fidelity, and VanEck, alongside several native crypto firms, are among those bringing these ETFs to the market.
The approval of these products has the potential to attract significant capital inflows into Bitcoin, with many crypto executives expressing enthusiasm about their impact on the digital asset market.
When asked about the immediate effects of Bitcoin spot ETFs, Barthere foresees a redistribution of the token supply to new buyers but cautions that investor sentiment hinges on broader economic factors.
“It will likely lead to some
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