Hedge fund veteran Mark Yusko believes that the launch of Bitcoin Exchange-Traded Funds (ETFs) has given Wall Street some control over BTC’s price action.
In a new interview with crypto podcaster Scott Melker, Morgan Creek’s Yusko says he sees no signs of intense selling pressure in either the spot or ETF markets.
But Yusko says Bitcoin is correcting as entities heavily short BTC on the futures market. The hedge fund veteran believes that Bitcoin is being shorted by institutions to artificially lower the price of BTC so they can accumulate coins at a discount.
“There’s a little trick to the way ETFs work. ETFs don’t trade all day. They are trading in a very small window at the end of the day. So it makes sense that if you have a large order, you know you have a large order, you are BlackRock and you have to fill that order with Bitcoin, you don’t want the price to be high.
You want a low price.
So somewhere else in your book, while not accusing anyone of anything, you could go out and sell the crap out of Bitcoin to push the price down so you can buy it cheaper.
That usually happens on Wall Street, with all the assets.
So if you really want to buy a lot of something, you don’t tell everyone you love it. You don’t go out and buy it. You’re actually cutting it a bit short and you’re telling everyone you hate it.
At the time of writing, Bitcoin is trading at $57,629, down 2.78% in the past 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney