Bloomberg Analyst: Misjudging Bitcoin ETF as Reducing Market Volatility Is Incorrect; High Volatility and High Risk Will Persist

According to Odaily, Bloomberg Senior ETF Analyst Eric Balchunas stated on the X platform that his previous assessment—that the investor structure of bitcoin ETFs would be stronger than market expectations—still largely holds true. However, his earlier prediction that ETF inflows would reduce market volatility has proven to be incorrect. Eric Balchunas explained that he initially believed retail ETF inflows would replace the highly speculative retail investors from before the FTX incident, thereby increasing market stability. However, he did not fully consider the selling pressure caused by early holders (OGs) offloading their positions at higher prices. He also pointed out that bitcoin's approximately 450% increase over two years is itself a potential risk signal, as rapid price surges are often accompanied by high volatility. Therefore, the characteristic of bitcoin as a high-volatility, high-risk asset is likely to persist for the foreseeable future.