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After a month of slumping, Bitcoin ETFs are once again attracting hundreds of millions of dollars per day.
Bitcoin ETFs
While the ETH ETF was only just approved thanks to a bizarre populist shift in the Democratic Party, the Bitcoin ETF is back on track.
Business, which had apparently slowed since early April, is picking up. Inflows are now up for the ninth consecutive day.
American ETFs currently hold 850,000 BTC, compared to 987,000 BTC globally.
That said, the US ETF has only absorbed an additional 230,000 BTC since January 10. The difference with the 850,000 BTC is due to the fact that the GBTC Trust (now converted into an ETF) already held 620,000 BTC.
As for GBTC, the exodus continues, with clients fleeing to BlackRock ETFs due to their seven times higher management fees. BlackRock ETFs ($19.7 billion) have displaced GBTC ($19.6 billion) in less than five months.
Why? Probably because this forced rotation will generate high fees for Wall Street…
Either way, it’s important to note that only 105,000 BTC have been mined since January 10th, meaning the ETF has collected all the newly created Bitcoin, plus an additional 125,000 BTC.
Since the halving, the gap has widened even further: for example, the ETF collected 14,324 BTC last week, while only 3,150 BTC were mined in the same period, a 4.5x increase.
One of the reasons for the renewed enthusiasm may be the revelation of which big funds invested in Bitcoin ETFs in the first quarter. Big names like investment bank Morgan Stanley did not go unnoticed, as did the State of Wisconsin pension fund.
Another bullish factor is the replacement of the anti-Bitcoin CEO at Vanguard, the world's second-largest investment fund. The new CEO was previously in charge of BlackRock's ETFs…
Bitwise CIO's comments also added to the confusion. Matt Hougan said that the first quarter's trading volume was just an appetizer. For him, most investors start investing in ETFs six to 12 months after their launch.
An article on the complete list of major institutional investors who have invested in Bitcoin ETFs.
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Bitcoin, geopolitics, economics and energy journalist.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
