Recently, the Bitcoin ETF market has become the focus of the financial field, showing a complex situation in terms of market liquidity, capital security and macro-policy impact.

Bitcoin ETF Liquidity Dilemma

Liquidity is a key element in the financial market. For Bitcoin ETFs, the problem of insufficient liquidity is particularly prominent. Key indicators for measuring liquidity include trading volume, bid-ask spread, and market depth. In terms of trading volume, some Bitcoin ETFs have performed poorly in daily trading and are difficult to compare with traditional asset ETFs.

Low liquidity can cause many troubles for investors. On the one hand, there may be a large price shock when buying and selling Bitcoin ETFs, that is, the buying and selling behavior will have a significant impact on the asset price, making it difficult for investors to trade at the ideal price. On the other hand, when the market fluctuates violently, investors may be unable to adjust their investment portfolios in a timely manner due to insufficient liquidity and be forced to suffer a significant decline in the value of their assets.

BlackRock's Market Dominance and Challenges

As a globally renowned asset management giant, BlackRock holds an important position in the Bitcoin ETF sector, managing up to $55.38 billion in assets, accounting for 50%. BlackRock attracts a large number of investors through its strong brand influence, extensive customer base, and professional investment management team.

However, BlackRock has not had a smooth journey. Recently, rumors of its funds 'cutting supply and abandoning buildings' have negatively impacted the company's reputation. Moreover, although BlackRock leads in market share for Bitcoin ETFs, it also faces challenges such as intensifying market competition and changing regulatory policies.

Industry Turmoil Triggered by Hacking Attacks

On February 21, 2025, the world's second-largest crypto exchange Bybit was hit by a hacking attack, with stolen assets valued at $1.46 billion, making it the largest single theft in cryptocurrency history. The hacking group Lazarus Group was identified as the mastermind behind the attack, having long infiltrated through APT attacks, exploiting a 'blind signature' vulnerability, and deceiving Bybit employees into signing malicious transactions, ultimately altering smart contract logic to transfer cold wallet assets.

This hacking incident has caused a tremendous shock to the cryptocurrency market. Bitcoin plummeted by 3% within 24 hours, falling below $95,000; Ethereum dropped by 6.7%, and the USDe token briefly decoupled to $0.96. Over 170,000 global investors faced liquidation, resulting in losses of $572 million. The Bybit platform also fell into a liquidity crisis, with over $4 billion flowing out within 24 hours, and withdrawal requests surged to 100 times the usual volume.

The Far-reaching Impact of Federal Reserve Policies on the Market

The Federal Reserve's monetary policy has always been an important barometer for financial markets. Recently, the Fed's signal to pause interest rate cuts has had a significant impact on the cryptocurrency market. When the Fed pauses rate cuts, the market interest rate environment changes, and investors' asset allocation strategies will also adjust accordingly.

On one hand, cryptocurrencies like Bitcoin, as risk assets, may lose their appeal in an environment of rising or sustained high interest rates. Investors may shift funds towards more stable assets, such as bonds, leading to outflows from Bitcoin ETFs. On the other hand, the uncertainty of Federal Reserve policies also increases market volatility, making investors more cautious when investing in Bitcoin ETFs.

The Bitcoin ETF market currently faces multiple challenges, including insufficient liquidity, threats of hacking, and macro policy uncertainty. Investors need to fully recognize the risks involved when entering this field and make investment decisions cautiously. At the same time, regulatory agencies should strengthen their oversight of the cryptocurrency market and improve relevant laws and regulations to ensure market stability and protect investors' rights.$BTC #bybit被盗 #钱包安全