The post ‘Biggest Beneficiary Will Be Bitcoin’: Jeff Park on BTC’s Massive Supply Advantage appeared on BitcoinEthereumNews.com.

Illiquidity premium The opposite of traditional finance Inside institutional finance, there is a developing discussion about whether or not traditional portfolio theory actually applies to cryptocurrency markets. According to Jeff Park, one of the most widely accepted theories in the industry, the so-called illiquidity premium, is beginning to show signs of weakness, and Bitcoin may end up benefiting the most from this change. Illiquidity premium The belief that capital should be locked into illiquid assets like venture funds or private equity should yield higher long-term returns has been instilled in large investors for decades. The reasoning is simple: lower liquidity increases risk, and greater risk necessitates higher compensation. BTC/USDT Chart by TradingView That presumption is contested by Park’s perspective in the context of crypto. He contends that because liquidity itself has the ability to produce significant alpha, cryptocurrency markets behave differently. By using market making, arbitrage and short-term positioning, traders and institutional desks can seize volatility-driven opportunities instantly, rather than having to wait years for value creation. XRP Records Largest On-Chain Realized Loss Spike Since 2022 Ripple Partners With Deutsche Bank, $2 Billion in Bitcoin Scooped by Whales, Schwartz Criticizes Logan Paul, Shiba Inu Price Enters Consolidation — Top Weekly Crypto News The opposite of traditional finance The standard term structure is turned upside down by this inversion. It may be more profitable to have short-term liquid exposure in cryptocurrency than to have long-term lockups, which goes against institutional wisdom. Since that model fit with well-known frameworks, many funds initially entered the cryptocurrency space through venture capital vehicles. However, Park contends that the most scalable and effective opportunities are currently found in liquid markets. Bitcoin’s unrivaled depth and fixed supply structure make it stand out in this conversation. You Might Also Like Because of the liquidity of the spot and…

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Filed under: News - @ February 22, 2026 3:24 pm