Notice how net crypto stablecoin issuance, is ONLY $224 billion, net $BTC ETF inflows are only about $40 billion

— but crypto total market cap is ~3.3 TRILLION?

Crypto market caps do not arise from inflows in the way you think, and in some cases rising market caps don’t require inflows at all.

Some EXTREMELY COMMON MISCONCEPTIONS:

+ that market caps of companies are simply assets minus liabilities, or EBITDA, or something like that, involving concretely-justifiable present or future net assets flows

— WRONG, e.g. $NVDA’s price-to-earnings ratio today is 51

+ that market caps of crypto coins are the sum of the inflows into the coins

— WRONG, market cap to liquidity ratios of coins often tend to be 50x to 100x

+ that market caps of funds, for those that have them, which most don’t exactly but some do, tend to be the value of the assets under management

— WRONG, see e.g. the daosfun coins, many of which have a 50x+ ratio of market cap versus assets under management

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Total $BTC spot ETF inflows:

— $40.6 billion

Stablecoin issuance, a proxy for dollar inflows:

— $224 billion

$BTC market cap:

— $1,900 billion

Crypto market cap:

— $3,300 billion

What gives crypto trillions in market cap, when only a net hundreds of billions have flowed in?

In a way — simple unwillingness to sell at a cheaper price, regardless of inflows size.

Market caps are not related to inflows in the way you wrongly presume.

🄳🄾🄾🄼🄿🄾🅂🅃🄸🄽🄶

GM

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