Industry insiders may be celebrating Bitcoin’s climb toward all-time highs, but Bloomberg ETF analyst Eric Balchunas says the credit shouldn’t just go to longtime crypto believers — it’s the exchange-traded funds (ETFs) investors who truly moved the needle.
In an exclusive conversation with TheStreet Roundtable, Balchunas pointed out that while early adopters and crypto natives are enjoying the rally, spot Bitcoin ETFs were the real catalyst behind the surge from $30,000 to $70,000.
“If you look at the last 18 months, ETFs and Saylor were net buyers. Everyone else? Net sellers,” Balchunas said. “The ETFs did all the heavy-lifting.”
Balchunas is a Senior ETF Analyst at Bloomberg Intelligence, known for his expertise in exchange-traded funds. With over two decades of experience, he bridges traditional finance and emerging assets like cryptocurrencies.
He argues that ETFs make crypto investing far more accessible. “ETFs are simple — you roll out of bed, click a button, and boom — Bitcoin exposure. No wallets, no exchange headaches, no 2% fees. Just 1–2 basis points. That’s Amazon-level simplicity.”
For investors who care about decentralization and self-custody, Balchunas says that’s fine — but most people just want in. “If you're into wallets and decentralization, great — but most people just want to invest. ETFs let them do that, fast and cheap.”
Balchunas also believes ETFs helped clean up the damage left by scandals like FTX. “FTX created a stench. The ETFs cleared that out.” As of May 19, Bitcoin ETFs had traded a total of $3.63 billion in value, per data from SoSo Value.
He also noted how Bitcoin held strong during recent volatility. “It didn’t fall 40% like I expected. It was held. And when the market bounced, it outperformed.”
As per Kraken's price feeds, Bitcoin is trading at $104,790, up 2.3% in the past 24 hours and showing continued strength after a sharp rebound in April. The world’s largest cryptocurrency has climbed 11.7% over the past two weeks and 24.6% in the past month, reflecting growing investor confidence. With year-over-year gains now exceeding 56%, Bitcoin appears to be regaining momentum, supported by macro tailwinds, ETF inflows, and renewed institutional interest.
The Bogle effect
Balchunas tied this shift to what he calls the “Bogle Effect,” referencing Vanguard founder Jack Bogle.
“What Bogle did was flip Wall Street upside down. He created a firm where the investors owned the company… less churn, and a completely new investor behavior — one that doesn’t panic-sell every time there’s a dip.”
According to Balchunas, Bitcoin ETFs are now channeling that same effect into crypto. “Crypto often talks about decentralization and eliminating middlemen. But in practice, the space is full of friction — clunky wallets, high fees, confusing platforms. If the industry wants mainstream adoption, it needs to internalize what Bogle stood for: investor-first design.”