Demand for BTC may also depend on the stock market
When I used to study BTC capital flows, I focused mainly on ETFs, stablecoin supply, and market leverage.
Recently, I saw news about MSCI adjusting its index inclusion rules and realized there’s another funding channel worth watching.
It’s companies that raise capital through public listings and then continue buying BTC.
If Bitcoin treasury companies like Strategy are excluded from some stock indexes in the future due to changes in index rules, passive funds that track those indexes may need to sell the related stocks.
But there’s an important distinction here:
Passive funds sell the company’s stock, not the BTC it holds.
What’s really worth watching is whether reduced demand for the stock could affect the company’s share price, financing conditions, and ability to keep buying BTC in the future.
This chain of effects wouldn’t happen directly, and it doesn’t mean it will necessarily happen at all.
But it made me realize that when studying demand for BTC, we can’t focus only on spot ETFs.
Capital in traditional stock markets could also affect demand for BTC indirectly through publicly listed companies.
I think what’s worth continuing to watch isn’t just how much capital flows into BTC, but where that capital comes from and whether it can be sustained.
#BTC #crypto #Strategy
When I used to study BTC capital flows, I focused mainly on ETFs, stablecoin supply, and market leverage.
Recently, I saw news about MSCI adjusting its index inclusion rules and realized there’s another funding channel worth watching.
It’s companies that raise capital through public listings and then continue buying BTC.
If Bitcoin treasury companies like Strategy are excluded from some stock indexes in the future due to changes in index rules, passive funds that track those indexes may need to sell the related stocks.
But there’s an important distinction here:
Passive funds sell the company’s stock, not the BTC it holds.
What’s really worth watching is whether reduced demand for the stock could affect the company’s share price, financing conditions, and ability to keep buying BTC in the future.
This chain of effects wouldn’t happen directly, and it doesn’t mean it will necessarily happen at all.
But it made me realize that when studying demand for BTC, we can’t focus only on spot ETFs.
Capital in traditional stock markets could also affect demand for BTC indirectly through publicly listed companies.
I think what’s worth continuing to watch isn’t just how much capital flows into BTC, but where that capital comes from and whether it can be sustained.
#BTC #crypto #Strategy