Bitcoin ETFs Turn Green, Bitwise CIO Highlights Record Milestone

Highlights

Bitcoin ETF flows turn positive after two weeks of significant outflows exceeding $1.2 billion.
Bloomberg analyst Eric Balchunas said that $1.2 billion outflow is minor in comparison to the $46 billion AUM.
Bitwise CIO countered claims of reduced adoption by highlighting rapid growth in investment advisor participation.

The spot Bitcoin ETFs are again in the green, having suffered two consecutive weeks of net outflows, with over $1.2 billion leaving these funds in the process. This development partly contributed to Bitcoin’s price dropping below $54,000 during this period. However, BTC has rebounded alongside these Bitcoin ETFs and climbed to as high as $58,000 in the last 24 hours. Meanwhile, amid the mixed sentiment towards these Bitcoin ETFs, Bitwise CIO Matt Hougan has come out in their defense, stating that investment advisers are massively adopting these funds.

Bitcoin ETF Witness Net Inflows Amid Shift In Market Sentiment

As per the Farside Investors data, the total inflows into spot Bitcoin ETFs on Monday stood at $28.6 million, with Fidelity’s FBTC seeing $28.6 million in inflows and Bitwise’s BITB recording $22.0 billion in inflows. On the other hand, Grayscale’s GBTC recorded $22.8 million in outflows, while BlackRock’s IBIT saw $9.1 million in outflows.

Yesterday’s inflows provide huge relief after a sea of outflows in the last two weeks. Some in the crypto industry also started saying that the BTC ETFs have started losing ground amid the drop in the Bitcoin market sentiment.

Top industry players have come out in support of Bitcoin ETFs. Bloomberg analyst Eric Balchunas stated that he continues to be bullish on the BTC ETFs, adding that the $1.2 billion outflows are small in comparison to the $46 billion AUM of the ETFs. He said that this is part of the game and the outflows are not sizeable to the extent to warrant a major concern. It is worth mentioning that despite these outflows, these ETFs have witnessed a total net inflow of $16.92 billion since they launched in January.

Bitwise CIO Highlights Record Milestone For Bitcoin ETFs

Jim Bianco of Bianco Research shared his opinion last week that Bitcoin ETFs are losing ground among investment wealth advisers and that their adoption is very “small,” thereby downplaying the investment product. Refuting this, Bitwise CIO Matt Hougan added that Bitcoin ETFs are seeing faster adoption rates among investment advisors than any other new ETFs in history.

Taking BlackRock’s IBIT as an example, Hougan stated that this ETF has attracted $1.45 billion in net flows from investment advisors. This makes it the second fastest-growing ETF launched this year, excluding other Bitcoin ETFs. Hougan also compared this to the KLMT ETF, which was seeded with $2 billion from a single investor but has seen little investment advisor participation.

Thus, the Bitwise CIO emphasized that while investment managers may represent a smaller fraction of overall Bitcoin ETF buyers, their adoption of these products has been unprecedented.

Jim is wrong here: Investment advisors are adopting bitcoin ETFs faster than any new ETF in history.

Let's look at his own data, focused on IBIT, the BlackRock ETF.

Per his table, IBIT has attracted $1.45 billion in net flows from investment advisors. He calls this "small"… https://t.co/0Sis9lIWDp

— Matt Hougan (@Matt_Hougan) September 9, 2024

As said, the resurgence in the Bitcoin price has been a major catalyst to the inflows. As of press time, the Bitcoin price is up 3.56%, trading at $57,146.12 with a market cap of $1.130 trillion.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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