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"What Happened to Bitcoin ETF?" Newsletter: Is ETF Inflow Slowing Down?

Your Weekly Dose of Bitcoin ETF Insights

Author

Brian HoonJong Paik
March 19, 2024

This week in the Bitcoin ETF Lowdown, we've observed pivotal shifts across various ETFs, with notable changes in Total Assets Under Management (AUM), Bitcoin (BTC) holdings, and investor movements. Let's dive into the numbers to gauge the market's pulse:

Total AUM and Net Flow Dynamics:

  • Overall AUM Movement: The landscape showcased a mix of expansion and contraction. Notably, IBIT led the pack with a significant AUM increase of $2.7 billion from the previous week, closely followed by FBTC, which added $1.2 billion to its coffers. On the flip side, GBTC experienced an outflow, reducing its AUM by $1.55 billion.

BTC Holdings Adjustments:

  • IBIT(BlackRock) and FBTC(Fidelity) Shine: These two ETFs significantly boosted their Bitcoin caches. IBIT augmented its holdings by 34,633 BTC compared to the previous week, marking a strong vote of confidence from investors. FBTC wasn't far behind, with an addition of 10,023 BTC.

GBTC(Greyscale)'s Outflow Trend:

  • A notable narrative last week was GBTC's continued outflow, shedding 19,924 BTC from its holdings. This trend aligns with the AUM decrease, suggesting a strategic reallocation by investors towards other ETFs, or sell high at Bitcoin’s new ATH price.

Spotlight on Other ETFs:

  • While IBIT and FBTC captured headlines with their growth, BITB(Bitwise) also made waves, increasing its Bitcoin holdings by 1,401 BTC and its AUM by $110 million. This movement underscores the diversification and growing interest in alternative Bitcoin ETFs.

  • BITB's positive adjustment, albeit smaller in scale, hints at the underlying currents of diversification within the Bitcoin ETF sector. Investors are not just flocking to the giants but are also exploring other avenues, signifying a maturing market landscape.

Looking Ahead:

As we navigate through the unfolding narratives, a key focus for this week will be on the inflow data of Bitcoin ETFs, particularly in the wake of a 10% price correction Bitcoin experienced over the past seven days. This correction phase marks a critical juncture, and the forthcoming ETF inflow statistics will serve as a vital indicator of market sentiment.

Should the analysis of this week's data reveal a deceleration in capital inflows into ETFs, it could signal a prolongation of the current Bitcoin price correction period. Such trends are instrumental in shaping our expectations and strategies moving forward, highlighting the interconnectedness of ETF flows and Bitcoin's market dynamics.

Stay alert to these developments, as they not only influence investment decisions but also provide deeper insights into the broader market's direction in these fluctuating times.

What’s Hot This Week?

1/ 🚀 BlackRock & Fidelity Crush It with Bitcoin ETFs🚀

Guess who's leading the Bitcoin ETF charge? BlackRock's IBIT and Fidelity's FBTC are not just playing in the big leagues; they've zoomed into 2024's top 5 YTD flows like they own the place. This isn't just a win; it's a testament to Bitcoin's rising star in the investment universe. 🌟

💥 ETF Market Explosion 💥 

These Bitcoin ETF champs are rewriting the rules, showing that crypto's not just cool, it's investment gold. Eric Balchunas, Bloomberg's ETF guru, is all nods about the expanding ETF landscape. And with BlackRock hoarding $15.3 billion worth of Bitcoin, the crypto cred in Wall Street’s halls is soaring.

📈 Record-Breaking Inflows 📈 

The U.S. spot Bitcoin ETF scene? It's on fire, with inflows hitting the roof at $2.57 billion. BlackRock's IBIT is grabbing the lion's share, proving Bitcoin is more than a trend—it's the investment of the future.

While some whisper about potential dips, the horizon's looking bright for Bitcoin. BlackRock and Fidelity's ETF success signals a major leap for crypto in mainstream finance. And with the Bitcoin halving event on the horizon, we're buckled up for even more skyrocketing growth. The crypto train's leaving the station, and it's all aboard for Bitcoin ETFs. 🚂💨

Market whisperers hint: Keep an eye on those inflows, especially with Bitcoin's recent rollercoaster. If the inflow pace takes a breather, we might be settling in for a longer correction phase. But hey, in crypto, every twist brings a new adventure. 🎢

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2/ 🚀 Standard Chartered Goes Bullish on Bitcoin 🚀

Hold onto your hats, crypto enthusiasts! Standard Chartered just upped the ante, forecasting Bitcoin to blaze past $150,000 by year's end – that's a jump from their previous $100k call. But wait, there's more! They're seeing BTC hitting a dizzying $250k in 2025 before taking a slight chill pill to $200k.

Why the bullish vibe? It's all about those gold vibes and the ETF magic. With spot Bitcoin ETFs now a thing in the U.S., the bank's drawing parallels to gold's ETF glow-up and how it's a game-changer for Bitcoin's price.

Gold (XAU) Historical Price Trends | 1979 – 2023 | The price of Gold (XAU) was $700 when SPDR Gold Shares rolled out the first Gold ETF ($GLD) in November 2004. Notably, by August 2011, the price of Gold had skyrocketed 254% to reach a new all-time high of $2,450.

And for the Ethereum fans, there's something to cheer about too. Standard Chartered's crystal ball sees an ETH ETF getting the green light on May 23, pumping as much as $45 billion into the market within the first year and catapulting ETH to a cool $8k by the end of 2024. By 2025? They're calling $14k ETH, riding on a BTC wave worth $200k.

Buckle up; the crypto rollercoaster's only getting started!

3/ Retail's Big Bet 🎉

Talk about starting with a bang! Bitcoin ETFs have been raking in the dough since their grand entrance in January. The buzz? It's real. But here's the kicker: it's not the big-shot institutions throwing their weight around. Nope. It's the everyday Joe and Jane pumping billions into Bitcoin, one trade at a time.

🚀 IBIT: The People's Champ

BlackRock’s IBIT is where the party's at, averaging 250,000 trades daily. With each trade clocking in at about $13,000, it's clear: retail investors are leading the charge. Balchunas from Bloomberg Intelligence points out, "It looks like retail is definitely a big factor." Big surprise? Not really.

🤑 A Flood of Fresh Cash

IBIT alone has magnetized over $14 billion in just two months. "BlackRock is everything to everybody," Balchunas notes. High liquidity, low fees, and that shiny BlackRock label? Irresistible.

🌊 ETFs: The Crypto Gateway

ETFs have made it a breeze for non-crypto folks to dip their toes into Bitcoin waters, all without getting their hands on the actual asset. It’s like Bitcoin, but with training wheels. And it’s not just IBIT; nine out of ten Bitcoin ETFs are enjoying the inflow fiesta, with only Grayscale's GBTC watching the party from the sidelines.

💸 Breaking Even Looks Easy

Normally, ETFs need to stack up $80M-$100M just to break even on fees. But even the smallest player, WisdomTree’s BTCW, is sitting pretty with around $70 million. In the world of Bitcoin ETFs, it seems the retail crowd is king.

🐦 Hot Tweet of the Week

1/ Advisors Start to Embrace Bitcoin ETFs: A New Norm in Portfolio Allocation

Grant Engelbart of Carson Group breaks it down on Bloomberg ETF IQ: a growing number of advisors are now allocating an average of 3.5% in Bitcoin ETFs to their client portfolios.

2/ First Net Outflow in Bitcoin ETFs Since March Unveiled

The ETF market saw its first net outflow day since March 1, with a decrease of $154.3 million. However, a bullish trend is expected once the selling is complete.

🍫CRYPTO CRUMBS ON THE TRAIL 🍫

Dive into this week's crunchy bites of crypto news, serving up the freshest updates and insights from the blockchain world.

Here's what's on the menu:

  1. Bitcoin Flash Crashed to $8.9K on BitMEX

    Large sell orders worth $55.49 million drove bitcoin’s price down to $8,900 on BitMEX. The overnight crash was short-lived.

  2. Analyst Predicts Parabolic Rally for Bitcoin, Says Time for Altcoins To Make Way for King BTC

    A closely followed crypto strategist thinks that it’s about time for Bitcoin (BTC) to steal liquidity from altcoins.

  3. Grayscale CEO says fees on its bitcoin ETF will drop over time after outflows hit $12 billion

  4. Judge rules computer scientist not Bitcoin inventor

    The judge overseeing a legal battle about who invented Bitcoin has ruled that it is not Australian computer scientist Craig Wright.

Stay tuned to "Crypto Crumbs on the Trail" for your weekly dose of important crypto news, keeping you informed and ahead in the ever-evolving world of digital assets.

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The Bitcoin ETF Lowdown: Dissecting the daily crypto craze with sharp insights and electrifying updates.

Disclaimer: This newsletter is for the brainy and the brave. It's for informational purposes only and not a substitute for investment advice. Always do your own research.