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The wind is picking up for Bitcoin ETFs

Sat 25 May 2024 ▪ 3 min of reading ▪ by Nicolas T.

After a month of lean times, Bitcoin ETFs are once again attracting hundreds of millions of dollars per day.


Bitcoin ETF

While ETH ETFs have just been endorsed thanks to a grotesque populist turnaround by the Democrats, Bitcoin ETFs are resuming their forward march.

After a clear slowdown since early April, business is picking up. We are now on the ninth consecutive day of inflows:

American ETFs now hold 850,000 BTC. Globally, we are at 987,000 BTC.

That said, American ETFs have absorbed “only” an additional 230,000 BTC since January 10. The difference with the 850,000 BTC lies in the fact that the GBTC trust (now transformed into an ETF) already held 620,000 BTC.

Speaking of GBTC, the hemorrhage continues. Its clients are fleeing to BlackRock’s ETF because of its seven times higher management fees. BlackRock’s ETF ($19.7 billion) dethroned GBTC ($19.6 billion) in less than 5 months.

Why? Probably because this forced rotation generates juicy commissions for Wall Street…

In any case, note that only 105,000 BTC have been mined since January 10. This means that the ETFs have collected all the freshly created bitcoins, and an additional 125,000 BTC.

The gap has widened further since the halving. For example, ETFs collected 14,324 BTC last week, compared to just 3,150 BTC mined at the same time. That’s 4.5 times more.

The renewed enthusiasm is probably partly due to the fact that we now know which major funds invested in Bitcoin ETFs in the first quarter. The presence of big names like investment bank Morgan Stanley did not go unnoticed. Neither did the Wisconsin State pension fund.

Another bullish factor is the replacement of the anti-bitcoin CEO of Vanguard, the second-largest investment fund in the world. The new CEO was previously in charge of BlackRock’s ETFs…

The statements of Bitwise’s CIO also stirred things up. Matt Hougan stated that the first-quarter volumes were just an appetizer. For him, most investors come forward six to twelve months after the launch of an ETF.

Our article on the complete list of major institutional investors who have invested in Bitcoin ETFs.

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Nicolas T. avatar
Nicolas T.

Bitcoin, geopolitical, economic and energy journalist.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.