Why Bitcoin Isn’t Soaring to the Moon Despite ETFs’ Stellar Launch

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It seems that even the most ardent crypto enthusiasts are scratching their heads in bewilderment. Fundstrat co-founder and chief investment officer, Tom Lee, has kindly stepped forward to shed some light on the matter, explaining why Bitcoin (BTC) hasn’t quite made it to the celestial heights one might have expected, despite the crypto king’s spot exchange-traded funds (ETFs) enjoying what can only be described as the “most successful product launch in history.” 🚀

In a recent interview with CNBC, Lee, with the air of a man who has just discovered the secret to eternal youth, suggests that the strategy employed by these spot Bitcoin ETFs might be part of the problem.

“I think what happened is a couple of things. One is a lot of these ETFs may have been receiving in-kind exchange. So people have their crypto keys, give it to the ETF provider and then they just stepped up their basis. So that’s not going to push up the price of Bitcoin.”

But wait, there’s more! Lee, ever the astute observer of the crypto landscape, also points out that profit-taking among early Bitcoin investors could be another factor in this cosmic conundrum.

“The second is that the ones who aren’t involved in ETFs, but maybe they have $10-Bitcoin… we have clients that have bought Bitcoin at $100 and now it’s $100,000. They don’t care if Bitcoin goes to $1 million. They are probably sellers at around $100,000.”

So we’re churning the base now because 95% of the institutional world doesn’t own Bitcoin. But a very significant portion of Bitcoin holders are sitting on huge gains. So I think this is the churn that’s happening in Bitcoin now.”

And just to put a cherry on top of this delightful crypto sundae, the US spot Bitcoin ETFs have seen a whopping $48.608 billion in net inflows since their launch in January of 2024. Yet, Bitcoin remains stubbornly anchored at $107,290, much as it was in December of 2024. 🤷‍♂️

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2025-07-03 23:01