Bitcoin ETF outflows hit $5B, but ‘boomers are holding,’ says Balchunas

Key Points

  • Despite recent outflows, Bitcoin ETF investors, particularly boomers, are holding firm with 95% to 97% of assets remaining.
  • Bitcoin ETFs have seen $35.4 billion in total net inflows, with BlackRock’s IBIT leading at $39.2 billion.
  • Outflows from Grayscale’s GBTC have been significant, losing $22.5 billion.
  • Bitcoin's price surge to $100,000 was influenced by ETF launches and Trump's pro-crypto stance.

Summary

Recent data shows that despite significant outflows from Bitcoin ETFs, the majority of investors, especially older investors or "boomers," are holding onto their investments. Bloomberg's senior ETF analyst, Eric Balchunas, highlighted that while Bitcoin ETFs have experienced a $5 billion outflow, reducing the cumulative inflows from $40 billion to $35 billion, this represents only a 5% asset reduction. Notably, much of the outflows can be attributed to hedge funds rather than long-term retail investors. Balchunas pointed out that during the dot-com crisis, only 25% of funds left the SPY ETF, suggesting that the current 95% retention rate for Bitcoin ETFs is quite robust. He also discussed the impact of ETF launches and political influences on Bitcoin's price, noting a significant rise from $30,000 to $100,000, with a potential price floor at $70,000. Despite recent market downturns, Bitcoin's price remains relatively stable, indicating strong underlying investor confidence.

yahoo
March 18, 2025
Crypto
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