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The wind is picking up for Bitcoin ETFs

13h19 ▪
min reading time ▪ of
Nicolas T.

After a month of lean times, Bitcoin ETFs are once again attracting hundreds of millions of dollars a day.

Bitcoin ETF

While ETH ETFs have only just received approval thanks to a grotesque populist U-turn by the Democrats, Bitcoin ETFs continue their advance.

After a significant slowdown since the beginning of April, business is picking up again. We are now on the ninth day in a row with inflows:

American ETFs now hold 850,000 BTC. Worldwide, we are at 987,000 BTC.

However, American ETFs have “only” added an additional 230,000 BTC since January 10. The difference to the 850,000 BTC is that the GBTC Trust (now converted into an ETF) already held 620,000 BTC.

Speaking of GBTC, the bleeding continues. Its customers are fleeing to BlackRock’s ETF because the management fees are seven times higher. BlackRock’s ETF ($19.7 billion) has dethroned GBTC ($19.6 billion) in less than five months.

Why? Probably because this forced rotation brings Wall Street hefty commissions…

In any case, note that only 105,000 BTC have been mined since January 10. This means that the ETFs have collected all newly created Bitcoins plus an additional 125,000 BTC.

Since the halving, the gap has become even wider. For example, ETFs collected 14,324 BTC last week, while only 3,150 BTC were mined at the same time, which is 4.5 times more.

The renewed enthusiasm may be due in part to the fact that we now know which major funds invested in Bitcoin ETFs in the first quarter. The presence of big names like investment bank Morgan Stanley did not go unnoticed. Nor did the Wisconsin state pension fund.

Another positive factor is the replacement of the Bitcoin-hostile CEO of Vanguard, the world’s second-largest mutual fund. The new CEO was previously responsible for BlackRock’s ETFs…

The statements of Bitwise’s CIO also caused a stir. Matt Hougan explained that the first quarter’s sales were just a foretaste. In his opinion, most investors register six to twelve months after an ETF is launched.

Our article on the full list of major institutional investors who have invested in Bitcoin ETFs.

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Nicolas T. AvatarNicolas T. Avatar

Nicolas T.

Bitcoin, geopolitics, economics and energy journalist.


The views, thoughts and opinions expressed in this article belong solely to the author and should not be construed as investment advice. Do your own research before making any investment decisions.

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