Why tracking bitcoin ETF flows matters. And why it doesn’t.
The post Why tracking bitcoin ETF flows matters. And why it doesn’t. appeared on BitcoinEthereumNews.com. Those keeping tabs on the crypto industry (this writer included) have been quick to refresh pages of daily bitcoin ETF flow data and digest them. News headlines have kept segment observers up to date on the money going into, and more recently leaving, these funds. The pent-up angst over the U.S. Securities and Exchange Commission’s long term refusal to approve spot bitcoin ETFs left many speculating about the potential investor capital these products would attract out of the gate. There were also considerations about whether this demand would be enough to spur further interest, in order to draw both retail and institutional investors, along with their capital, into the crypto space. We now have the initial data to answer some of these pressing questions. On day one, the funds tallied trading volumes of $4.5 billion, and $655 million of net inflows. By two months in, after the category welcomed $1 billion in assets on March 12 alone, the funds’ inflows amounted to $11.1 billion. The total stands at about the same level today as momentum has slowed in recent weeks. Continued GBTC outflows have coincided with stalled demand for the category’s most consistent flow-gatherers: BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC). And in an unprecedented turn Wednesday, 10 of the funds — including those by BlackRock and Fidelity — each saw outflows, spurring a $564 million exodus on the day. Read more: BlackRock, Fidelity bitcoin ETFs bleed Wednesday, joining GBTC With this background established, we can now zoom out to examine the broader implications of bitcoin ETF flows. Bitcoin ETF flow impact Because bitcoin is a speculative investment, inflows and outflows typically dictate price moves, said Bryan Armour, director of North America passive strategies research at Morningstar. After all, bitcoin ETFs actually buy and…
The post Why tracking bitcoin ETF flows matters. And why it doesn’t. appeared on BitcoinEthereumNews.com.
Those keeping tabs on the crypto industry (this writer included) have been quick to refresh pages of daily bitcoin ETF flow data and digest them. News headlines have kept segment observers up to date on the money going into, and more recently leaving, these funds. The pent-up angst over the U.S. Securities and Exchange Commission’s long term refusal to approve spot bitcoin ETFs left many speculating about the potential investor capital these products would attract out of the gate. There were also considerations about whether this demand would be enough to spur further interest, in order to draw both retail and institutional investors, along with their capital, into the crypto space. We now have the initial data to answer some of these pressing questions. On day one, the funds tallied trading volumes of $4.5 billion, and $655 million of net inflows. By two months in, after the category welcomed $1 billion in assets on March 12 alone, the funds’ inflows amounted to $11.1 billion. The total stands at about the same level today as momentum has slowed in recent weeks. Continued GBTC outflows have coincided with stalled demand for the category’s most consistent flow-gatherers: BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC). And in an unprecedented turn Wednesday, 10 of the funds — including those by BlackRock and Fidelity — each saw outflows, spurring a $564 million exodus on the day. Read more: BlackRock, Fidelity bitcoin ETFs bleed Wednesday, joining GBTC With this background established, we can now zoom out to examine the broader implications of bitcoin ETF flows. Bitcoin ETF flow impact Because bitcoin is a speculative investment, inflows and outflows typically dictate price moves, said Bryan Armour, director of North America passive strategies research at Morningstar. After all, bitcoin ETFs actually buy and…
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