Bitcoin Halving Sparks Humor Amid Coincidental 69-Day Bitcoin ETF Inflow Streak
Summary:
The recent Bitcoin halving has generated humor around coincidental events involving Bitcoin ETFs. Notably, on the halving day of April 20, the largest U.S spot Bitcoin ETF also reported its 69th day of continuous inflows. Despite some slow down, BlackRock's iShares Bitcoin Trust (IBIT) hasn't witnessed outflows yet. However, opinions on Bitcoin ETF performance are divided, as per the latest form 13F filings. Some view it as a disappointment, having failed to infiltrate the mainstream market, others remain optimistic and foresee careful use by asset managers.
The successful performance of spot Bitcoin exchange-traded funds (ETFs) has led to an amusing discussion, revolving around the recent Bitcoin halving. Even though the Bitcoin price hasn't shown much movement during this halving, the coincidence of events has surprised many.
Eric Balchunas, a reputed ETF analyst with Bloomberg Intelligence, drew attention to an interesting co-incidence on X (previously known as Twitter). On the day of Bitcoin halving, April 20 – which itself is a popular date – the largest U.S spot Bitcoin ETF also marked its 69th consecutive day of money inflows.
Balchunas amusingly noted that this synchronization seemed almost preplanned. The inflow of Bitcoin ETFs has decelerated since reaching its highest point in March. Yet, BlackRock's iShares Bitcoin Trust (IBIT), boasting the most significant money under management, has not reported a single day of outflows.
The most recent figures showing the flow within the ETF market reveal a cautious resurgence towards the end of last week. On April 19, IBIT garnered almost $30 million, while the runner up, managed by Fidelity Investments, secured nearly $55 million. The Grayscale Bitcoin Trust (GBTC) experienced relatively moderate outflows of $45.8 million the same day.
However, the performance of Bitcoin ETFs is creating divergent opinions. Latest form 13F filings have raised concerns that Bitcoin ETFs have been unable to penetrate the general public. The first-quarter allocation data discussed by Jim Bianco, founder of macro research company Bianco Research, was described as a "disappointment.”
In contrast, Balchunas offered an optimistic viewpoint, implying that asset managers might use these products judiciously. He pointed out that though IBIT now has around 60 reported holders, they only hold 0.4% of the total shares. He further speculated based on the high daily trading volume that these funds might be added in small amounts by the majority. The readers are advised to carefully research and consider all associated risks before making investment decisions.
Published At
4/21/2024 12:05:35 PM
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