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Is there a possibility that Bitcoin ETF will lose money?
Bloomberg analyst Eric Balciunas said on the 26th that there is a “good chance” that the assets under management of Bitcoin (BTC) ETFs will exceed those of gold ETFs within two years. . Blockworks reported.
The 10 Bitcoin spot ETFs that began trading in January have recorded net inflows of approximately $5.5 billion (approximately 830 billion yen) to date.
Meanwhile, approximately $2.7 billion (approximately 406 billion yen) has been outflowed from the largest gold ETF, State Street Global Advisors' SPDR Gold Share (GLD), since then. There was also an outflow of approximately $350 million (approximately 52.7 billion yen) from BlackRock's iShares Gold Trust (IAU).
Analysts Balchunas and Andre Yap point out:
It is highly likely that most of the funds that flowed out of gold ETFs did not flow into Bitcoin ETFs. (There was a possibility of inflow into AI stocks)
That said, Bitcoin ETFs are in many ways the most successful launch in history, and their existence, and the excitement surrounding them, makes them a new competitor to gold.
All together, Bitcoin ETFs have managed nearly $38 billion (approximately 5.7 trillion yen) in assets so far. In comparison, each company's gold ETFs manage more than $90 billion (approximately 14 trillion yen) in assets.
Brian Armor, Morningstar's director of passive strategies research, however, takes a more modest view.
He opined that if market risks increase and there is a bear market, investors will behave in a risk-averse manner, hindering inflows into Bitcoin. Still, there is little inflow from individual investors, and the environment is supported primarily by institutional investors, who have a high risk tolerance.
He argues that it may be “in the distant future” for Bitcoin ETFs to overtake gold ETFs in terms of assets under management. To that end, he argued that it is necessary for Bitcoin ETFs to consistently demonstrate strong performance. (*Bitcoin continued to rise on the 27th, reaching $57,000 at one point.)
He also opined that the outflow from gold could be due to “either interest rate cut expectations changing or the market moving further into risk-on mode”.
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor's investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
Virtual currency glossary
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
BlackRock IBIT trading volume hits record high
The trading volume of BlackRock's iShares Bitcoin Trust (IBIT), which has the largest amount of assets under management among Bitcoin spot ETFs, reached approximately $1.3 billion (approximately 196 billion yen) on the 26th.
It's official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM
— Eric Balchunas (@EricBalchunas) February 26, 2024
This was the highest price, exceeding the approximately $1 billion (approximately 150 billion yen) on the first day of trading. In addition, the total trading volume of the nine Bitcoin spot ETFs (excluding GBTC) exceeded $2.4 billion (approximately 360 billion yen), exceeding the all-time high of $2.2 billion (approximately 330 billion yen) recorded on the first day of trading. There is.
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The post Experts discuss the possibility that Bitcoin ETF assets will overtake gold ETFs appeared first on Our Bitcoin News.
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