Bitcoin has won a ticket to Wall Street through ETFs, but in doing so, it has surrendered its "independent" soul.
Institutionalization is the culprit that deprives Bitcoin of its "hedge attribute." BTC has lost its immunity to mainstream financial collapse because it has been fully embraced by mainstream finance. You think you are buying an ark against the collapse of fiat currency, but in reality, what you are buying is an amplifier of Wall Street's risk appetite.
In simple terms, Bitcoin is now welded to the very end of Wall Street's global liquidity chain. When the Bank of Japan raises interest rates, the yen carry trade, which is a major conduit of global funds, will shrink. Wall Street fund managers must sell assets to plug the holes. Who is the easiest to sell? Who never closes? Who has the greatest volatility? It is Bitcoin.
