CryptoQuant founder Ki Young Ju has raised concerns about the continuous influx of capital into spot Bitcoin ETFs, warning of a potential sell-side liquidity crisis within six months if the trend persists. Ju's remarks come amidst a surge in spot Bitcoin ETF inflows, surpassing the $10 billion inflow mark for the first time.
Ju emphasized that a sell-side liquidity crisis could lead to a cyclical top exceeding projections due to limited sell-side liquidity and a thin orderbook. He noted an uptrend in BTC held by "accumulation addresses" – wallets characterized by only inbound transactions. However, he stated that the accumulation address must reach around 3M BTC for the crisis to happen.
Recent findings show that there has been a notable surge of capital directed towards spot Bitcoin ETF products within the U.S. market. Specifically, on March 11, $505 million was the netflows in these products, with BlackRock leading the way with daily inflows amounting to $562 million. VanEck's HODL product also observed a noteworthy uptick, as inflows soared to a remarkable $118 million on the same day.