ETFs Have Never Been the Driving Force Behind Bitcoin's Growth

Key figures in the digital asset space have criticized Jim Cramer, the host of CNBC’s “Mad Money,” for his remarks on Bitcoin’s recent performance. Cramer’s assertion that “no one showed up” after the approval of spot Bitcoin ETFs, following a decline in BTC’s price, was refuted by industry stakeholders.

Taking to X (formerly Twitter), Cramer characterized Bitcoin’s recent dip as a “Nasty beginning to the Bitcoin selloff.” According to him, the leading cryptocurrency had witnessed a substantial increase in value, amounting to hundreds of billions of dollars, in anticipation of the ETF approvals. However, post-approval, he observed a lack of significant adoption.

Contrary to Cramer’s claim of a “no show,” Samson Mow, a prominent figure in the crypto industry, argued that many investors did indeed participate. Mow pointed to the inflows recorded by BlackRock, Fidelity, and other approved ETFs as supporting evidence for the adoption of Bitcoin. He emphasized that the current pullback in BTC’s price is merely a market adjustment for GBTC.

Mow went on to elaborate that Bitcoin’s growth has never been reliant on ETFs. In his view, the value of BTC stems from factors such as scarcity, utility, and the perceived shortcomings of fiat currency.

James Lavish, a former hedge-fund manager who has since reformed, also rejected Cramer’s assertion of a “no show.” Pointing to the recent performances of financial assets, Lavish demonstrated that combining the capital inflows of the top two new Bitcoin ETFs would rank them second on the list.

Lavish’s response caught the attention of Eric Balchunas, a senior ETF analyst at Bloomberg, who remarked that Cramer has “got no clues.” Balchunas suggested that the host of Mad Money was attempting to troll the Bitcoin community.

Following the approval of the ETF, BTC experienced a 17% decline from its yearly high of $49,048. As of the current writing, the flagship cryptocurrency was trading at $41,199, having reached a low of $40,600 on Thursday, according to TradingView data.