Tue, July 02, 2024 at 16:51

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about the recent performance of spot bitcoin ETFs.

  • 
• Annie

  • Hi, Kang-hoon!

  • That sounds interesting.

  • What's the latest update?😊

  
• 

  Kang-hoon

  • Despite a 7% decline in the price of bitcoin in June, spot bitcoin ETFs saw net inflows of $790 million.

  • This is quite surprising given the usual trend of outflows during price declines.

  • 
• Annie

  • Wow, that's unexpected!

  • Why do you think this happened?

  
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• 

  Kang-hoon

  • One reason could be the strong performance of BlackRock's iShares Bitcoin Trust (IBIT), which saw inflows topping $1 billion.

  • This helped offset the outflows from other high-fee funds like the Grayscale Bitcoin Trust (GBTC).

• Annie

  • BlackRock seems to be doing well.

  • But didn't the funds experience heavy outflows in April when bitcoin's price declined?

  
• 

  Kang-hoon

  • Yes, you're correct.

  • In April, when bitcoin's price declined by 15%, the spot funds as a group saw large outflows.

  • This makes June's performance even more noteworthy.

• Annie

  • That's quite a turnaround.

  • What do analysts say about this?

  
• 

  Kang-hoon

  • Bloomberg Intelligence senior ETF analyst Eric Balchunas mentioned that boomers are better holders than some analysts, like James Bianco, make them out to be.

  • This suggests that the inflows might be from more stable, long-term investors.

• Annie

  • Interesting perspective.

  • Could there be other factors contributing to this positive inflow?

  
• 

  Kang-hoon

  • Absolutely.

  • Part of the positive inflow streak in June could also be due to the enthusiasm around the potential approval of a spot ether ETF.

  • Regulators and issuers have been visibly working on this, which has spurred investor interest.

• Annie

  • A spot ether ETF?

  • That sounds promising!

  • When might we see this happen?

  
• 

  Kang-hoon

  • Reports suggest that ether ETF issuers have been asked to re-submit an important filing before July 8.

  • This has raised hopes that the ETFs could hit the market this month.

• Annie

  • That's soon!

  • Do you think the arrival of a rival spot crypto ETF could affect the bitcoin funds?

  
• 

  Kang-hoon

  • It might pull some money from the bitcoin funds, but it could also be positive.

  • It signals that regulators are finally embracing the crypto industry as part of the financial system.

• Annie

  • That makes sense.

  • Overall, would you say this news is good or bad for the market?

  
• 

  Kang-hoon

  • I would say it's good news.

  • The net inflows despite a price decline show strong investor confidence.

  • Plus, the potential approval of a spot ether ETF indicates regulatory progress, which is positive for the market.

• Annie

  • Great to hear!

  • Thanks for the detailed explanation, Kang-hoon.

  • This definitely helps with my investment decisions.😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • I'm glad I could help.

  • Have a great day!

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.