Blockstream’s CEO, Adam Back, anticipates a substantial impact on Bitcoin (BTC) from the influx of funds through a Bitcoin exchange-traded fund (ETF). Expressing his views on the social media platform X, the seasoned Bitcoin investor suggests that ETF inflows will wield a staggering 30 times more influence than the upcoming BTC halving, scheduled for April 18th.
Backing his perspective, Back points out that much of traditional finance, guided by broker sentiment, tends to follow momentum buying strategies. As the price rises due to smart-money actions, they advocate buying, generating news, prompting further purchases, and creating a cyclical effect.
As an early Bitcoin investor and the mind behind Hashcash, a proof-of-work system integral to BTC mining, Back highlights that Bitcoin’s fundamentals are currently extraordinary, characterizing it as an early stage in the bull market. He notes the proximity of the halving event and observes the growth in ETF volume, with Fidelity’s FBTC experiencing higher inflows than BlackRock’s IBIT over the last two days—an encouraging sign of expanding investor interest.
Addressing recent fluctuations in Bitcoin’s price, Back suggests that the downturn may be driven more by fear, uncertainty, and doubt (FUD) than substantial net selling. According to him, there seems to be a lack of significant net-sellers at present. He points out that individuals might contribute to creating temporary dips by selling out of fear, hoping to repurchase at lower prices. However, he cautions that such moves are often mistimed by those with weaker hands, resulting in buying back at higher levels.
As of the current writing, Bitcoin is valued at $40,125
