How Bitcoin ETFs Are Allowing Wall Street to Manipulate BTC Prices

Mark Yusko, a veteran hedge fund manager, believes that the introduction of Bitcoin exchange-traded funds (ETFs) has granted Wall Street a degree of control over Bitcoin’s price dynamics.

In a recent interview with crypto podcaster Scott Melker, Yusko noted that while there hasn’t been notable selling pressure in the spot and ETF markets,

Bitcoin’s current price correction is attributed to institutional shorting in the futures market. Yusko suggests that some institutions are deliberately shorting Bitcoin to lower its price, allowing them to purchase it at a reduced rate.

He explained that ETFs have specific trading windows at the end of the day. If a large institution like BlackRock has a significant Bitcoin purchase to make, it would prefer to acquire it at a lower price.

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To accomplish this, institutions might engage in aggressive shorting to drive the price down, thereby securing Bitcoin at a more favorable price.

This practice, according to Yusko, is not unique to Bitcoin but is a common tactic across various financial markets. When institutions aim to buy large quantities of an asset, they often disguise their intentions by publicly expressing negative views and shorting the asset to reduce its price.

Alexander Stefanov