Will the ETFs cause Bitcoin price to drop eventually?

Contra intuitive, right? Hear me out, I mostly have facts and then some speculation, very open for debate.

• Blackrock’s IBIT Bitcoin ETF has ~360 000 Bitcoins in holding, amounting to ~$21 billion at the moment [sauce]
• IBIT’s custodian service is Coinbase Prime [sauce]
• IBIT’s Bitcoin is held in wallets with value under $35 million [sauce]
• multiple exchanges and staking platforms were hacked just this summer [example sauce]
• stolen crypto is very rarely recoverable

Let’s start with the last one as that’s a harder to prove claim, but it’s a fact nevertheless. Let’s see an example of Razzlekhan and their accomplice stealing 100 000 Bitcoins (worth $billions) from the exchange Bitfinex. [sauce]

• they stole it in 2016
• Bitfinex customers lost 36% of their assets for ~3 years (Bitfinex reimbursed them on its own)
• they were caught and arrested in 2022

Photo by mana5280 on Unsplash

Bank hack vs crypto hack

Banks get hacked, bank accounts get drained every day. But it’s vastly different from crypto theft. First of all hackers just love the anonymity of the blockchain. There isn’t a ransomware that uses anything else but crypto…