Why Is Bloomberg Analyst Bullish on Spot Bitcoin ETFs Despite $1.2B Outflow?

Highlights

US Bitcoin ETFs saw $1.2B in outflows over eight days, the largest since their January debut.
Despite recent outflows, Eric Balchunas views them as minor, noting $16.8B in YTD inflows.
CoinShares data shows $726M in digital asset outflows, with the US contributing $721M amid rate cut uncertainty.

US Bitcoin exchange-traded funds (ETFs) have experienced their longest period of daily net outflows since their introduction at the beginning of the year. Data compiled through September 6, 2024, reveals that investors withdrew nearly $1.2 billion from these ETFs over an eight-day period.

However, Bloomberg analyst Eric Balchunas has maintained a positive outlook on spot Bitcoin ETFs despite the outflows. Balchunas argues that the outflows, while large, represent a small fraction of the total assets under management (AUM) and are not as concerning as they might appear.

Bloomberg Analyst Eric Balchunas Bullish on Spot Bitcoin ETFs

In a recent thread on X, Bloomberg analyst Eric Balchunas highlighted his continued optimism towards spot Bitcoin ETFs despite recent outflows. Balchunas noted that the $1.2 billion withdrawn from the ETFs is relatively minor when compared to the total AUM of these funds. He emphasized that such outflows are a normal part of the investment cycle and that significant inflows into Bitcoin ETFs earlier in the year have set a high bar.

According to Balchunas, the $287 million outflow reported recently constitutes only 0.5% of the total AUM, which he considers a manageable amount.

Balchunas also addressed the concern that the outflows might indicate a broader issue with the Bitcoin ETFs market. He argued that fluctuations in asset prices are not uncommon and that the current outflows should be viewed in the context of the overall trend.

He pointed out that despite the recent downturn, Bitcoin ETFs have seen substantial net flows year-to-date, reaching $16.8 billion. This figure is close to the high end of his earlier predictions and reflects ongoing investor confidence in the cryptocurrency ETFs.

Market Conditions and Outflows

The recent outflows from US Bitcoin ETFs come amid a broader retreat from riskier assets in global markets. Economic uncertainty, including mixed US jobs data and deflationary pressures in China, has contributed to volatility in both the cryptocurrency and traditional financial markets. Concurrently, CoinGape reported BTC price crash and $300 million in liquidations after Friday’s weak Jobs data.

Despite Eric Balchunas positivity, weekly CoinShares data also reveal outflows from digital asset investment products, totaling $726 million. This matches the largest outflow recorded in March of this year.

More so, the US experienced the bulk of these outflows, amounting to $721 million, driven by uncertainty surrounding potential interest rate cuts by the Federal Reserve. The market’s mixed reaction to macroeconomic data and anticipation of the upcoming Consumer Price Index report contributed to this volatility.

In contrast, Europe displayed more resilience, with Germany and Switzerland showing modest inflows of $16.3 million and $3.2 million, respectively. Among individual assets, Bitcoin saw the largest outflows at $643 million, while Solana attracted $6.2 million in inflows, indicating a shift in investor preference.

At the time of writing, Bitcoin price is $54,959.48, showing a 1.57% increase in the last 24 hours. The market cap has reached $1.09 trillion, maintaining Bitcoin’s top position in market rankings

However, this BTC price recovery has come with bull trap concerns due to a potential U.S. recession. Despite the uptick, several troubling economic indicators are casting doubt on the rally’s sustainability

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.