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"What Happened to Bitcoin ETF?" Newsletter: Total inflows surpassed $13 billion!
Your Weekly Dose of Bitcoin ETF Insights
Brian HoonJong Paik
June 03, 2024
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Welcome to "What Happened to Bitcoin ETF?”
In this week's edition, we delve into the key highlights from May 28th to May 31st, noting that May 27th is Memorial Day in the U.S. 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.
GBTC Outflow Analysis: Understand the impact of GBTC outflows on the Bitcoin market.
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!
1/ Total AUM and ETF Price Dynamics:
Weekly AUM Overview:
As of May 31st, the total Assets Under Management (AUM) was $57,891,364,138. The AUM decreased by $979,282,846 in USD terms, while it increased by 1,930 BTC in BTC terms.
This shift was largely due to the ETF price decline over the week, influenced by a 2.7% drop in Bitcoin spot prices. The decrease in price followed the release of April's PCE data, which suggested persistent inflation and decreased likelihood of a Fed rate cut.
Despite these challenges, the market shows signs of potential recovery and growth by witnessing continuous inflows. During May, the Bitcoin ETF market had net inflows on 15 out of the 20 trading days.
During May, the Bitcoin ETF market had net inflows on 15 out of the 20 trading days
🇭🇰 Hong Kong ETF AUM Overview:
The total Assets Under Management (AUM) of the Hong Kong Spot Bitcoin ETF experienced modest fluctuations throughout the week. As of May 31st, the total AUM was $248,985,000, compared to $245,490,000 on May 24th.
Despite this increase in USD terms, the total AUM in BTC terms saw a decline, with 3,647 BTC on May 31st, compared to 3,659 BTC on May 24th.
Hong Kong Spot Bitcoin ETF experienced modest fluctuations throughout the week
2/ BTC Holdings Weekly Flow:
Ending Holdings on May 31 (WoW Change):
GBTC (Grayscale): 286,957 BTC (-2,083 BTC)
IBIT (BlackRock): 289,058 BTC (+1,890 BTC)🚀
FBTC (Fidelity): 164,030 BTC (+2,492 BTC)
ARKB (Ark 21Shares): 47,175 BTC (-1,329 BTC)
BITB (Bitwise): 36,771 BTC (+586 BTC)
HODL (VanEck): 10,012 BTC (+226 BTC)
BRRR (Valkyrie): 8,577 BTC (+17 BTC)
BTCO (Invesco Galaxy): 7,370 BTC (+95 BTC)
EZBC (Franklin Templeton): 6,148 BTC (+0 BTC)
BTCW (WisdomTree): 1,274BTC (+37 BTC)
DEFI (Hashdex): 178 BTC (0 BTC)
Total: 854,926 BTC (+1,930 BTC)
The weekly total net inflow amount was only +1,930 BTC, a significant decrease from the previous week’s +15,000 BTC.
🇭🇰 Hong Kong ETF Holdings on May 31 (WoW Change):
ChinaAMC (9042): 1,567 BTC (0 BTC)
Harvest Global (9439): 896 BTC (+8 BTC)
Bosera Hashkey (9008): 1,184 BTC (-20 BTC)
Total: 3,647 BTC (-12 BTC)
The Hong Kong Spot Bitcoin ETF remained stable throughout the week, with only a minor outflow of -12 BTC
3/ GBTC(Greyscale)'s Outflow Trend:
Last week, the flow dynamics for GBTC demonstrated a notable shift, with a net outflow of 2,083 BTC, compared to the previous week's inflow of +86 BTC. This indicates a reversal in investor sentiment toward GBTC.
In a significant development, the amount of BTC held by GBTC has been surpassed by BlackRock's IBIT ETF. GBTC now holds 286,957 BTC, while BlackRock's IBIT ETF holds 289,058 BTC.
If investors' appetite for risky assets diminishes due to the looming possibility of a Fed rate cut in the near future, more GBTC outflows are expected, possibly driving down the ETF inflow’s positive impact on the Bitcoin price.
BlackRock IBIT’s AUM has finally surpassed Grayscale GBTC’s AUM
Note: All data sources are from the Bitcoin ETF Fund Flows.
4/ Looking Ahead:
Bitcoin ETFs Continue Their Meteoric Rise
Bitcoin ETFs are booming, with inflows surpassing $13 billion! As we enter June, it's clear that Bitcoin has never been more in demand. In the last two weeks alone, Bitcoin ETFs have seen 13 consecutive days of massive subscriptions, signaling strong institutional interest.
Net inflows into Bitcoin ETFs reached $48.706 million on May 30th, bringing total historical inflows to $13.809 billion. This demonstrates the growing confidence of both institutional and individual investors in Bitcoin.
BlackRock’s iShares Bitcoin Trust has recently overtaken the Grayscale Bitcoin Trust (GBTC) to become the largest Bitcoin fund, with nearly $20 billion in assets under management. Withdrawals from Grayscale have been moderate at $17.7 billion since its conversion to an ETF.
With this strong momentum, the coming week is likely to see continued positive flows into Bitcoin ETFs. Investors increasingly view Bitcoin as a reliable asset amid economic uncertainties, solidifying its role in modern portfolios. Stay tuned—Bitcoin ETFs are on the rise!
5/ What’s Hot This Week?:
Whales Move: Bitcoin Exchange Holdings Hit Record Low
Bitcoin transaction volumes have dropped to their lowest since 2023, with weekly volumes falling below $14 billion, indicating potential selling pressure on BTC prices.
Highlights:
Trading volumes have significantly decreased, showing a lack of interest in spot trading.
Weekly trading volume for Bitcoin is now under $14 billion.
Whales remain strong.
While spot trading activity is low, there has been a significant drop in Bitcoin exchange balances, indicating that whales are moving their coins off exchanges in anticipation of higher prices. Over the past month, 88,000 Bitcoins have been withdrawn, leaving only 2.5 million coins on exchanges, the lowest level since March 2018. This trend suggests that we might be in a pre-bull market phase, as large holders are positioning themselves for potential price increases.
As the market dynamics shift, these indicators could signal a period of consolidation before a possible rally. Keep an eye on the upcoming US inflation report on June 12, as a lower figure around 3.3% could act as a catalyst for Bitcoin to reach new all-time highs.
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6/ This Week’s Bitcoin Mindset:
Why Bitcoin Investment Must Focus on Long-Term Holding
In each bull run cycle, there are only 18 to 26 days when the Bitcoin price increases by over 20% within a 90-day time frame. This means you need to hold as much Bitcoin as possible during these days to capture the most profit from your investment. The bull market period within a cycle is typically very long, usually over a year, but the days when you can achieve maximum profit are very limited. Therefore, day trading is not the optimal strategy; instead, you should accumulate Bitcoin during the bull run.
Missing these critical days can significantly reduce your potential profits. As of May 2024, there have only been 5 days within a 90-day time frame when the Bitcoin price increased by over 20%. This suggests that there will be 15 to 20 more days over the next year or so when the price will likely surge by over 20%.
What should you do now? Earn as much cash as possible and buy Bitcoin. Holding and accumulating Bitcoin during the bull run ensures you are well-positioned to capitalize on these crucial high-profit days.
7/ 🐦 Hot Tweet of the Week
1) What if we told you... The real stock market ATH was in 1929?
2) Bitcoin is the apex predator
The best part of this meme is the NFT guy 😂
— Svetski (@SvetskiWrites)
12:45 PM • Jun 1, 2024
3) Inflation dismantles home and family
Never forget what they took from us with inflation.
— Declaration of Memes (@LibertyCappy)
6:46 PM • Jun 2, 2024
🍫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:
Bitcoin post-halving run may reach $130K by September 2025
Bitcoin's post-halving bull run could see it hit at least $130000 by September 2025 if it follows past market cycles, says Peter Brandt.
A closely followed crypto analyst says that one under-the-radar indicator is hinting at a sudden Bitcoin (BTC) rally to new all-time highs.
Max Keiser Reveals Epic Bitcoin Prediction for Old 'New' El Salvador President By U.Today
U.Today - Nayib Bukele started his second term as President of El Salvador yesterday, continuing his administration's pioneering efforts in...
Bitcoin's price would need to increase by just 210% for the anonymous creator of Bitcoin to become the wealthiest person globally.
Hong Kong's Securities and Futures Commission (SFC) has published a list of two licensed crypto trading platforms and 17 pending applicants...
PS - You can't control the waves, but you can always control your mind.
Whether Bitcoin is at $69K in 2021 or 2024, your mindset is your most powerful tool. Stay calm, stay focused, and invest wisely.
Stay charged,
SmashFi Team
P.S. - Follow me on X (@brianhoonjong) for daily doses of insightful updates on Bitcoin ETFs and beyond! 🚀🐦
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“What Happened to Bitcoin ETF?” Newsletter: Dissecting the daily crypto craze with sharp insights and electrifying updates.
Performance as of June 3rd
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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.