February 26 News: As funds continue to flow into the Bitcoin ETF market, some investors are questioning why Bitcoin’s price has not yet broken through the key $150,000 level. Jeff Park, head of the Bitwise Alpha strategy, recently stated that the real limit on Bitcoin’s upward potential is not a single market maker, but the structural design and operational mechanism of the Bitcoin ETF itself.
Jeff Park explained that authorized participants (APs) hold a special position in the creation and redemption process of ETF shares, allowing them to perform more capital-efficient hedging operations within the “gray area” of regulatory rules. Unlike ordinary traders, APs do not need to rely entirely on the spot market when executing short or arbitrage strategies, which alters the traditional direct link between capital inflows and price movements.
A more critical point is the change in hedging methods. Theoretically, when an ETF trades at a premium, arbitrage firms should buy spot Bitcoin to correct the price gap. However, if they choose to hedge using Bitcoin futures or derivatives, no real spot buying demand is generated. This means that even if ETF capital inflows increase, they may not translate into sustained upward momentum in the spot market.
Additionally, the shift toward a “physical redemption” mechanism has weakened the previous structural constraint requiring the purchase of Bitcoin on the open market. Some institutions can access liquidity through over-the-counter channels, reducing the impact on the public market price discovery mechanism and further weakening the direct correlation between ETF capital inflows and Bitcoin price increases.
Jeff Park emphasized that there is currently no clear market manipulation, but the mismatch between traditional financial regulatory frameworks and Bitcoin’s decentralized nature creates a structural disconnect, making it difficult to clearly categorize arbitrage activities. This institutional friction may lead to continued increases in Bitcoin ETF capital inflows while Bitcoin’s price rises slowly, affecting market expectations for Bitcoin to break through the $150,000 target level.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin ETFs See $213M Daily Inflow, Ethereum ETFs Record $83M Outflow on April 24
Gate News message, according to the April 24 update, Bitcoin ETFs recorded a single-day net inflow of 2,733 BTC (approximately $213.15 million), with a 7-day net inflow of 18,232 BTC (approximately $1.42 billion). Ethereum ETFs showed a single-day net outflow of 35,713 ETH (approximately $82.93 mill
GateNews3h ago
Bitcoin Breaks $78,000 but Falls 0.47% Intraday
Gate News message, April 24 — Bitcoin broke through $78,000 today, though it recorded a 0.47% decline over the intraday period.
GateNews3h ago
Project Eleven awards Q-Day 1 BTC bounty: researchers use a quantum computer to crack a 15-bit elliptic curve key
Project Eleven, a nonprofit organization focusing on research into “Q-Day (Quantum Computer Breaks Blockchain Cryptography Day),” announced on 4/24 that it would award a $1 Bitcoin bounty to independent researcher Giancarlo Lelli. Using a Shor algorithm variant on publicly accessible cloud quantum computer hardware, Lelli successfully cracked a 15-bit elliptic curve key—marking the largest public quantum attack demonstration to date.
Attack Scale and Significance
Project Content Winner Giancarlo Lelli (Independent Researcher) Attack Target 15-bit elliptic curve key, searching 32,767 possibilities Using Hardware Publicly accessible cloud quantum computers Algorithm Shor
ChainNewsAbmedia4h ago
Nasdaq-Listed Nakamoto Unveils Active Bitcoin Derivatives Strategy Since Q1 2026
Gate News message, April 24 — Nakamoto, a Nasdaq-listed company, has announced an actively managed Bitcoin derivatives program running since Q1 2026. The strategy aims to generate recurring volatility income from a portion of the company's Bitcoin holdings while hedging against downside price
GateNews4h ago
Metaplanet Issues $50 Million in Zero-Interest Bonds to Fund Bitcoin Purchases
Gate News message, April 24 — Japanese bitcoin treasury firm Metaplanet announced on Friday that it is issuing 8 billion Japanese yen (approximately $50 million) in zero-interest ordinary bonds to fund future bitcoin purchases. The bond issuance was fully subscribed by EVO Fund, a Cayman
GateNews4h ago
Abraxas Capital Deposits 4,835 BTC Worth $378M to Major CEX
Gate News message, April 24 — According to on-chain data tracked by Lookonchain, Abraxas Capital deposited 4,835 BTC, valued at approximately $378 million, to a major CEX in the past hour.
The institutional investor also transferred 6,000 XAUT tokens, worth approximately $28 million, to several maj
GateNews5h ago
