ETF Outflows... Who they selling to?
Like many here I was pondering why there hasnt yet been any sign of BTC price increasing yet after all the super positive news recently... Yes I get that the rise was already priced in and perhaps the news was a little disappointing as there was no mention of agressive buying of BTC by institutions as yet ETFS have been selling big time according to all the trackers in recent week and this got me thinking.... When institutions buy they are likely going to seek better prices than the exchanges offer and thus buy direct from miners. When they are exposed or need to sell for any reason who are they selling to? If not other kinds of institutions then they must be selling on exchanges which is driving the price down currently. If that theory is true and the price is reasonably stable despite the ETF outflows then there must be a large amount of buying on the exchanges to keep the price stable right? Eventually this ETF selling will stop and allow the price to rise.... TLDR. ETF buying doesn't directly increase price as its not on exchanges...? ETF selling directly puts pressure on price as it is on exchanges....? Anyone agree or am I talking nonsense? submitted by /u/FreshDriver6849 [link] [comments]
Like many here I was pondering why there hasnt yet been any sign of BTC price increasing yet after all the super positive news recently... Yes I get that the rise was already priced in and perhaps the news was a little disappointing as there was no mention of agressive buying of BTC by institutions as yet
ETFS have been selling big time according to all the trackers in recent week and this got me thinking....
When institutions buy they are likely going to seek better prices than the exchanges offer and thus buy direct from miners.
When they are exposed or need to sell for any reason who are they selling to? If not other kinds of institutions then they must be selling on exchanges which is driving the price down currently.
If that theory is true and the price is reasonably stable despite the ETF outflows then there must be a large amount of buying on the exchanges to keep the price stable right?
Eventually this ETF selling will stop and allow the price to rise....
TLDR.
ETF buying doesn't directly increase price as its not on exchanges...?
ETF selling directly puts pressure on price as it is on exchanges....?
Anyone agree or am I talking nonsense?
[link] [comments]