Bloomberg analysts: Misjudging Bitcoin ETFs could reduce market volatility, but their high volatility and high risk attributes will persist.

Eric Balchunas, a senior ETF analyst at Bloomberg, wrote on the X platform that his previous assessment that the investor structure of Bitcoin ETFs would be stronger than the market expected remains largely valid. However, his earlier prediction that ETF funds would reduce market volatility has proven incorrect. Balchunas stated that he initially believed ETF retail funds would replace the highly speculative retail investors predating the FTX incident, thereby improving market stability. However, he failed to fully consider the selling pressure from early holders (OGs) reducing their positions at high levels. He also pointed out that Bitcoin's approximately 450% increase in two years is itself a potential risk signal; rapid price increases are often accompanied by high volatility. Therefore, Bitcoin's high-volatility, high-risk asset characteristics will continue for the foreseeable future.