Bitcoin’s 21M Cap Stands Firm Despite ETF Speculation

• Experts challenge Kendall’s claim that ETFs create "infinite" Bitcoin.
• Analysts reaffirm cryptocurrency's hard cap and its increasing institutional adoption.

On February 24, 2026, Cointelegraph reported that a viral post suggesting ETFs create infinite Bitcoin supply has sparked widespread industry backlash. Robert Kendall, the author of the claim, argued that the rise of derivatives and exchange-traded funds undermines Bitcoin’s scarcity by generating a "theoretically infinite" supply of paper Bitcoin, contradicting its fundamental 21-million cap.

Industry experts swiftly dismissed Kendall’s allegations, asserting that Bitcoin’s scarcity remains unaffected by financial derivatives. Harriet Browning, vice president of sales at Twinstake, emphasized that institutional vehicles such as ETFs and digital asset trusts (DATs) do not produce new Bitcoin. "When institutions allocate via ETFs and DATs, they are not diluting scarcity, as there will still only ever be 21 million," she explained.

The comparison between Bitcoin and gold markets further underscores this argument. While the gold market sees significant activity through paper trading, it does not alter the metal’s finite supply. Similarly, Bitcoin-linked financial instruments serve primarily as tools for market access and speculation, without affecting the actual cryptocurrency supply.

Additionally, the report highlighted the growing influence of derivatives in Bitcoin’s price discovery process. Market players, particularly institutional traders, frequently rely on futures and options to express views on Bitcoin, impacting the spot price indirectly. This shift has situated derivatives markets at the forefront of Bitcoin price formation.

Bitcoin’s effective scarcity also goes beyond its coded 21-million limit. Despite nearly 19.99 million Bitcoin mined so far, studies estimate that up to 4 million of these are permanently lost to inaccessible wallets or forgotten keys, rendering the actual available supply significantly lower.

Kendall’s argument has sparked conversation about evolving market frameworks, yet analysts remain united in their stance: derivatives and ETFs add sophistication to Bitcoin markets but leave its core scarcity untouched. The immutable 21-million cap is a foundational element securing Bitcoin’s status as a rare digital asset.

As of February 24, 2026, 15:08 UTC, Bitcoin (BTC) is trading at $63,450.89, reflecting a 3.69% decline in 24-hour trading volume, according to CoinMarketCap.