"What Happened to Bitcoin ETF?" Newsletter: Advisors Cautiously Embrace Bitcoin ETFs Amid Volatility

Sponsored by

Today's "What Happened to Bitcoin ETF?" newsletter is brought to you by “beehiiv”!

Join the beehiiv community — the secret behind the success of top newsletters like Milk Road.

Our comprehensive suite offers more than just tools; it's a gateway to growth, monetization, and seamless content creation. 

With beehiiv, you get a code-free newsletter and website builder, alongside insightful analytics that drive real results. Experience the difference of the most powerful newsletter publishing platform on the market.

Start your journey with beehiiv today, absolutely free — no credit card needed. 

Dive in now →

Welcome to "What Happened to Bitcoin ETF?”

In this week's edition, we delve into the key highlights from June 10th to June 14th. We offer a concise and engaging analysis of the ETF market. Here’s what you’ll find:

• AUM and Price Trends: Explore the changes in Assets Under Management (AUM) for U.S. and Hong Kong ETFs.

• BTC Holdings Fluctuations: Get insights into the weekly BTC flow dynamics.

• Future Outlook: A sneak peek into what’s coming next week.

Dive into the data with us and uncover the critical insights shaping the Bitcoin ETF landscape!

Weekly Bitcoin ETF in Numbers

• Total AUM of Bitcoin ETFs (as of June 14th):

  $57,451,791,579

  ₿876,036

• Total Weekly Net Flow (June 10th~14th):

  -$3,520,480,203

  -₿8,478

• Top Weekly Performer:

  BlackRock (IBIT): +₿615

• Worst Weekly Performer:

  Grayscale (GBTC): -₿3,894

1/ Total AUM and ETF Price Dynamics:

Weekly AUM Overview:

As of June 14th, the total Assets Under Management (AUM) was $57,451,791,578. This represents a decrease of $3,520,480,203 from a week ago.

During the week, Bitcoin's price experienced a slight drop, slipping from the $68,000 level to around $66,000. On Friday, the release of lower-than-expected May CPI results initially provided a boost to Bitcoin. However, the positive impact was short-lived as the June FOMC press conference held a few hours later dampened the market's enthusiasm.

Additionally, the total AUM for Bitcoin ETFs decreased from the previous week's figures, indicating that investors are hesitant to re-enter the market until the current downtrend shows signs of reversing. This decline reflects a cautious sentiment among investors, preferring to stay away from the market during this period of uncertainty.

🇭🇰 Hong Kong ETF AUM Overview:

As of June 17th, the total Assets Under Management (AUM) was $57,451,791,578. This represents a decrease of $3,520,480,203 from a week ago.

Since the spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong began trading on April 30, they have accumulated $1.96 billion in bitcoin and $26.74 million in Ethereum. The funds, provided by AMC China, Bosera & Hashkey, and Harvest, are the only options available in the region. AMC leads with an AUM of $1.07 billion in Bitcoin and $18.17 million in Ethereum.

Despite the anticipated influx of mainland Chinese investors into Hong Kong’s spot bitcoin and ether ETFs, the reality has been more modest. While these funds have garnered significant assets, their scale currently pales in comparison to their U.S. counterparts.

2/ BTC Holdings Weekly Flow:

Ending Holdings on June 14 (WoW Change):

• GBTC (Grayscale): 281,212 BTC (-3,894 BTC)

• IBIT (BlackRock): 305,592 BTC (+615 BTC)

• FBTC (Fidelity): 171,539 BTC (-2,220 BTC)

• ARKB (Ark 21Shares): 46,792 BTC (-2,247 BTC)

• BITB (Bitwise): 37,839 BTC (-109 BTC)

• HODL (VanEck): 10,097 BTC (-57 BTC)

• BRRR (Valkyrie): 8,373 BTC (-227 BTC)

• BTCO (Invesco Galaxy): 6,976 BTC (-339 BTC)

• EZBC (Franklin Templeton): 6,148 BTC (+0 BTC)

• BTCW (WisdomTree): 1,290 BTC (+0 BTC)

• DEFI (Hashdex): 178 BTC (+0 BTC)

Total: 881,981 BTC (-8,478 BTC)

🇭🇰 Hong Kong ETF Holdings on June 14 (WoW Change):

• ChinaAMC (9042): 2,085 BTC (+62 BTC)

• Harvest Global (9439): 864 BTC (+0 BTC)

• Bosera Hashkey (9008): 1,119 BTC (-75 BTC)

Total: 4,076 BTC (-8 BTC)

• Note: All data sources are from the Bitcoin ETF Fund Flows.

3/ Looking Ahead:

Financial Advisors Cautiously Embrace Bitcoin ETFs Amid Volatility and Regulatory Scrutiny

Bitcoin ETFs launched in January, but financial advisors have been slow to adopt them. BlackRock’s Samara Cohen noted that around 80% of purchases are from self-directed investors, with RIAs remaining cautious. The primary concerns are Bitcoin's price volatility and its relatively short track record.

At the Coinbase State of Crypto Summit, Cohen emphasized that advisors are diligently performing risk analysis and due diligence to understand how Bitcoin fits into traditional portfolios. She described Bitcoin ETFs as a bridge between crypto and traditional finance, offering a regulated and familiar product for investors hesitant about managing risk across two ecosystems.

Despite this caution, institutional interest in Bitcoin ETFs is evident. Hedge funds and brokerages have also been buying these ETFs, although the scale remains modest compared to U.S. counterparts. Cohen sees this gradual adoption as part of a necessary journey for financial advisors, who must construct portfolios that align with their clients' risk tolerance and liquidity needs.

Coinbase’s CFO Alesia Haas echoed the sentiment of Bitcoin being on a "slow journey of adoption." Blue Macellari of T. Rowe Price highlighted that while some investors are comfortable with a 1% allocation to Bitcoin, there's a psychological barrier to broader adoption. It takes time for investors to become comfortable with such a paradigm shift.

As of June 17th, the total Assets Under Management (AUM) in Bitcoin ETFs was $57,451,791,578, reflecting a decrease of $3,520,480,203 from the previous week. This decline indicates that investors are waiting for the downtrend to show signs of reversing before re-entering the market. The market's cautious sentiment underscores the ongoing volatility and regulatory challenges facing Bitcoin ETFs.

In summary, while Bitcoin ETFs offer a promising bridge between cryptocurrency and traditional finance, their adoption among financial advisors remains gradual. The focus on risk management and regulatory compliance continues to shape the landscape, with gradual progress expected as advisors and investors become more comfortable with this new asset class.

4/ What’s Hot This Week?:

Bitcoin Faces Selling Pressure at $70,000 Amid Long-Term Holder Activity

On June 12, a wallet holding 8,000 Bitcoins became active after five years, and another wallet moved 2,000 Bitcoins after 14 years of dormancy. These movements suggest that some large holders might be selling at this level, indicating a perceived overvaluation.

Despite this, there’s no need for excessive worry. A significant portion of Bitcoin, around 1.8 million BTC (worth about $121 billion), has not moved in over ten years. This includes 1.1 million BTC (worth about $75 billion) believed to have been mined by Satoshi Nakamoto.

Although the market might see around 140,000 BTC returning from Mt. Gox exchange victims between October and November 2024, long-term holders, known as 'diamond hands,' still hold about 9.5% of the total circulating supply. Their steadfast holding contributes to Bitcoin's value stability and growth.

In summary, while Bitcoin faces selling pressure at $70,000, its strong network and dedicated long-term holders suggest it will overcome these challenges and potentially reach new highs.

5/ This Week’s Bitcoin Mindset:

Think Like the Whales - Invest for the Long Term

Voltaire once said, “History never repeats itself. Man always does.” This wisdom is particularly relevant in the world of Bitcoin investing. The recent activity of Bitcoin whales offers a crucial lesson: successful investors think and act with a long-term perspective, rather than reacting impulsively to market fluctuations.

On June 11, Bitcoin whales accumulated 20,600 BTC worth $1.38 billion in just 24 hours amid a market correction. This significant move occurred as Bitcoin's supply on exchanges fell to its lowest level since December 2021, signaling confidence in future price appreciation.

According to CryptoQuant, this was the largest single-day inflow for Bitcoin whales since February 28. As Bitcoin's price dropped from $71,650 on June 7 to around $69,000, daily inflows into whale accounts ranged between 1,300 and 2,200 BTC. The price drop prompted a massive accumulation on June 11, underscoring the strategy of buying during downturns.

This behavior exemplifies the principle of buying and holding. Whales—large, influential investors—capitalize on lower prices, focusing on long-term growth rather than short-term gains. Their actions reflect a deep understanding of Bitcoin's potential and a disciplined approach to investing.

Currently, Bitcoin's supply on cryptocurrency exchanges is at 942,000, its lowest since December 22, 2021, according to Santiment. This reduction in exchange reserves typically indicates expectations of future price increases, supporting the strategy of holding rather than trading.

For individual investors, the lesson is clear: think and act like whales. Resist the impulse to day trade based on short-term market movements. Instead, adopt a long-term investment mindset. History shows that those who maintain their conviction and patience often see the greatest rewards.

6/ 🐦 Hot Tweet of the Week

1) The sky is the limit for Bitcoin

2) Recharge your finances by investing in Bitcoin

🍫CRYPTO CRUMBS ON THE TRAIL 🍫

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

Here's what's on the menu:

1. From $40 billion fraud to $4.5 billion settlement: Inside the latest crypto firm paying big bucks to end legal trouble

   Judge approves $4.5 billion settlement between Do Kwon, Terraform Labs, and the U.S. Securities and Exchange Commission.

2. SEC Now Demands $102.6 Million Penalty From Ripple in XRP Case – Regulation Bitcoin News

   The SEC is now seeking $102.6 million penalty from Ripple, significantly reduced from the initial $2 billion.

3. Australia's Largest Stock Exchange Approves It's First Bitcoin ETF

   Australia's largest stock exchange, ASX, approved it's first spot Bitcoin ETF issued by VanEck, joining other major markets embracing...

4. Largest Telecom Provider in Europe, Deutsche Telekom, Will Begin Mining Bitcoin

   Deutsche Telekom, Europe's largest telecommunications provider, is set to venture into Bitcoin mining.

5. El Salvador: Bukele Launches Pro-Bitcoin Bank Project

   El Salvador could soon have a Bitcoin bank, an initiative by Bukele to offer more financial services to investors.

That’s it for today; stay tuned for more updates and insights in our next edition!

Stay charged,

SmashFi Team

P.S. - Follow me on X (@brianhoonjong) for daily doses of insightful updates on Bitcoin ETFs and beyond! 🚀🐦

Join the beehiiv community — the secret behind the success of top newsletters like Milk Road.

Our comprehensive suite offers more than just tools; it's a gateway to growth, monetization, and seamless content creation. 

With beehiiv, you get a code-free newsletter and website builder, alongside insightful analytics that drive real results. Experience the difference of the most powerful newsletter publishing platform on the market.

Start your journey with beehiiv today, absolutely free — no credit card needed. 

Dive in now →

If you found the newsletter enjoyable, then it's time to take the next step and subscribe!

“What Happened to Bitcoin ETF?” Newsletter: 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.