Tue, April 16, 2024 at 19:49

• 

  Kang-hoon

  • Hello Annie, I have some interesting news about Bitcoin ETFs.

  • It seems that the initial enthusiasm for spot Bitcoin ETFs has cooled down a bit.

  • Inflows have been unable to keep up with the rapid exits from Grayscale's Bitcoin Trust (GBTC).

  • As a result, in the week ending April 12, the spot ETFs as a whole saw a net outflow of 1,766 bitcoins.

  • 
• Annie

  • Oh wow!😮 That's quite a lot of bitcoins.

  • What about the other funds?

  
• 

  Kang-hoon

  • Well, last Friday and again on Monday, Fidelity's Wise Origin Bitcoin Fund (FBTC) had inflows of $0, breaking its streak of daily additions that started at launch on January 11.

  • 

  • This leaves BlackRock's iShares Bitcoin Trust (IBIT) as the only spot bitcoin ETF left that's experienced an unbroken string of inflows since the vehicles began trading.

• Annie

  • Hmm...so it seems like IBIT is doing pretty well then?

  
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• 

  Kang-hoon

  • Yes, that's correct.

  • For most of the remaining funds, including the Invesco Galaxy Bitcoin ETF (BTCO), the VanEck Bitcoin Trust (HODL) and the Valkyrie Bitcoin Fund (BRRR), among others, zero inflows and even occasional outflows have become the norm.

• Annie

  • That doesn't sound too good...😕 But is this normal?

  
• 

  Kang-hoon

  • According to James Seyffart, an ETF analyst at Bloomberg Intelligence, this is not out of the ordinary.

  • He points out that around 83% of all ETFs on the U.S. market saw zero inflows on Monday, for example.

• Annie

  • I see...so it's not just Bitcoin ETFs then.

  • What about the future?

  • Can we expect more inflows?

  
• 

  Kang-hoon

  • Indeed, there is potential for a resurgence in inflows.

  • 

  • Many banks, endowments, and pension funds worldwide are only now beginning their due diligence processes before considering strategic allocations to BTC through newly launched ETFs.

  • As these large financial institutions make decisions over the coming months, it is likely that inflows will increase once again.

• Annie

  • That's reassuring to hear!😊 And what about Grayscale's Bitcoin Trust (GBTC)?

  
• 

  Kang-hoon

  • Turning to Grayscale's Bitcoin Trust (GBTC), which continues to see outflows of 1,000 or more bitcoins on a daily basis, Seyffart isn't anticipating a reversal.

  • With GBTC at a 1.5% expense ratio, he would be surprised if GBTC saw any net inflow days and shocked if it saw sustained inflows over any time period.

  • 
• Annie

  • Hmm...so is this news good or bad for the market?

  
• 

  Kang-hoon

  • In my opinion, this news can be seen as positive.

  • The fact that large financial institutions are beginning their due diligence processes for strategic allocations to BTC through newly launched ETFs indicates a growing acceptance and institutionalization of Bitcoin.

  • This could potentially lead to increased inflows in the future, which would be beneficial for the market.

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