Max Keiser criticized investors in Bitcoin ETFs. | Credit: Steven Ferdman/Getty Images
Key Takeaways
- Bitcoin price surged by 7% to $67,071 after the Federal Reserve adopted a dovish stance.
- However, spot Bitcoin ETFs have experienced net outflows for the last 3 days.
- Max Keiser criticized investors in Bitcoin ETFs for generating profits for brokers through frequent buying and selling.
- Santiment indicated small investors might be selling due to market volatility.
Bitcoin (BTC) has experienced a notable recovery, surpassing the $67,000 mark following the Federal Reserve’s dovish remarks on Wednesday.
Currently, Bitcoin’s price has risen by 7%, trading at $67,071 at the time of writing (March 21 2024). Meanwhile, its market capitalization stands at $1.318 trillion.
ETF Investors Flee: Who’s Right, Max Keiser or Wall Street?
Despite this upward momentum, spot Bitcoin ETFs have seen net outflows for the third consecutive day.
Former RT host and Bitcoin enthusiast Max Keiser, recently said Bitcoin ETF investors were the epitome of “dumb money”. He claimed investors frequently engage in buying and selling Bitcoin ETFs, which, he said, more often than not, leads to losses.
He argues this trading behavior primarily benefits brokers through the generation of substantial commissions. Keiser suggests investors find it challenging to manage the inherent volatility of Bitcoin, which can result in financial difficulties.
His commentary highlights a skepticism towards the approach of indirect investment in Bitcoin via ETFs.
Also, Santiment, a provider of on-chain data, has observed a net decrease of 311,000 in the total number of non-zero Bitcoin wallets over the past 10 days. This trend might cause concern among less experienced traders, but historically, it has been linked to periods characterized by fear, uncertainty, and doubt (FUD) in the market.
This pattern indicates that holders of small Bitcoin wallets tend to sell off their coins during such times, potentially in a response to market volatility or negative sentiment. Conversely, larger wallet holders often view these moments as opportunities to increase their holdings, capitalizing on lower prices.
Keiser Goes Nuclear on Warren Branding Her a “Moron”
Senator Elizabeth Warren recently referenced a report by the US Governmental Accountability Office (GAO) in a way that portrayed cryptocurrencies in a negative light, despite the report itself offering a more nuanced view on the subject. This portrayal drew criticism from Max Keiser who did not hold back in his response, labeling her “a moron.”
Keiser is known for his forthright critique of Senator Warren’s positions on Bitcoin and cryptocurrencies, often expressing his disdain in stark terms. He has previously referred to Warren with highly critical and provocative descriptions such as “Lucifer’s mistress” and “inner right-hand executioner”.
Bitcoin Buyer Beware? $742 Million Exits ETFs in Three Days
According to Farside investors , Bitcoin ETFs witnessed outflows of $261 million on Wednesday, March 20. This meant there was a a total net outflow of $742 million in just three three days. The breakdown of these outflows started with $154.3 million on March 18, escalating to $326.2 million on March 19.
In particular, the Grayscale Bitcoin Trust (GBTC) experienced a net outflow of $386 million in a single day, contributing to its total historical net outflow of $13.27 billion. On the other hand, the BlackRock Bitcoin ETF, IBIT, recorded the highest single-day net inflow among Bitcoin spot ETFs on Wednesday, with $49.28 million, boosting its total historical net inflow to $13.09 billion. Despite this, inflows into Bitcoin ETFs have fallen this week amid market concerns over central bank policies.
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