Henry Robinson, the founder of Decimal Digital, predicts a potential Bitcoin supply shock as investment inflow in spot Bitcoin ETFs continues to grow.

In an exclusive comment to Global Crypto News, Robinson emphasizes that Bitcoin ETFs are set to revolutionize the industry by unlocking new investment opportunities. These financial instruments are expected to attract significant investments from various sectors, including pensions, endowments, insurance companies, sovereign wealth funds, and trusts.

The recent approval of several Bitcoin ETFs by the U.S. SEC has led to a trading frenzy, with reports suggesting over $500 million traded within the first 20 minutes.

Despite the initial excitement, Robinson warns of a potential “Bitcoin supply shock” looming on the horizon. This could result in sudden and drastic price fluctuations as demand continues to rise.

Robinson also questions the value of ETFs, stating that they may not offer significant advantages over self-custody, especially for long-term holders. He predicts a gradual decline in positions due to fee emissions over the years, potentially reducing the appeal of ETFs as Bitcoin adoption increases and institutions lean towards self-custody.

Following the SEC’s recent approval, BTC surged to $49,000 for the first time in nearly two years. However, the price quickly fell to the $46,000 range, aligning with Henry Robinson’s warning of a possible supply shock.

For more news and updates on cryptocurrencies, investing, and finance, continue exploring Global Crypto News.

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