By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
KriptotekaKriptoteka
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Reading: Bitcoin ETFs and Their Slow Impact on Crypto Adoption: Bianco
Share
Notification Show More
Font ResizerAa
Font ResizerAa
KriptotekaKriptoteka
  • Home
  • News
  • Market
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Kriptoteka > Crypto News > Bitcoin ETFs and Their Slow Impact on Crypto Adoption: Bianco
Crypto News

Bitcoin ETFs and Their Slow Impact on Crypto Adoption: Bianco

marcel.mihalic@gmail.com
Last updated: September 10, 2024 5:54 am
By marcel.mihalic@gmail.com 4 Min Read
Share
SHARE

Despite the enthusiasm surrounding the recent introduction of Bitcoin ETFs in the United States, Jim Bianco, CEO of Bianco Research, indicates that these financial instruments have yet to fulfill their expected function as a significant driver of cryptocurrency adoption.

In a post on Elon Musk’s social media platform, X, Bianco implied that Bitcoin ETFs will require additional time to evolve into a substantial “instrument of adoption” rather than merely a “small tourist tool.”

Bitcoin ETF Outflows and Insufficient Institutional Involvement

Bianco’s remarks shed light on the increasing doubts regarding the effectiveness of Bitcoin ETFs since their trading launch in January.

While there was considerable pre-launch buzz about the potential impact of spot Bitcoin ETFs, Bianco pointed out several indicators suggesting that the market may not yet be as robust as anticipated.

Significant issues identified by the expert include recent outflows, losses suffered by ETF holders, and a noticeable absence of major institutional investment, all hinting that the Bitcoin ETF market may still need time to fully mature.

A particularly important observation made by Bianco is the considerable net outflows in the Bitcoin ETF market. Citing statistics from Farside Investors, Bianco demonstrated that there have been more than $1 billion in net outflows from the 11 US Bitcoin ETFs in just the past eight trading days.

Spot Bitcoin ETFs flows.
Spot Bitcoin ETFs flows. | Source: Jim Bianco on X

This decline has decreased the total assets under management (AUM) for Bitcoin ETFs from a high of $61 billion in March to approximately $48 billion. Bianco contended that these outflows underscore a need for more consistent interest and capital inflows from institutional players.

Moreover, he observed that the majority of inflows into Bitcoin ETFs seemed to originate from existing cryptocurrency holders reallocating their positions into traditional finance (Trad-Fi) accounts rather than from new market entrants. This suggests that the ETFs may not have garnered the fresh capital they initially anticipated.

Further reinforcing the skepticism, Bianco noted that even BlackRock indicates that approximately 80% of Bitcoin ETF purchases have likely been made through self-directed online accounts, pointing to a lack of engagement from institutional investors in the Bitcoin ETF market.

The expert added:

Crypto-quant analysis indicates that most Spot BTC ETF inflows were from on-chain holders transferring back to Trad-Fi accounts— so very little “new” money has entered the crypto space. Thus far, these instruments have NOT fulfilled the hype of “here come the boomers.” Very few have arrived, and those that have are currently incurring losses, possibly leading to exits ($1B outflows over the past 8 days).

What Does the Bitcoin ETF Market Require to Mature?

Even though Bitcoin ETFs’ recent performance may not align with the early expectations, Bianco remains hopeful that they can eventually evolve into a crucial tool for cryptocurrency adoption.

He stressed the importance of “patience” and the need for more on-chain tools that could enhance market growth. Bianco believes it may take “a couple of seasons, including a winter or two and essential development breakthroughs” before the Bitcoin ETF market truly thrives.

The CEO remarked:

Can these tools become an instrument of adoption? Yes, potentially after the next halving (2028) and after significant development of on-chain tools have taken place first (i.e., BTC chain DeFi, NFTs, payments, etc.)

BTC price chart on TradingView amid Bitcoin ETF news
BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image generated using DALL-E, Chart from TradingView

You Might Also Like

Netherlands Introduces Crypto Tax Compliance Aligned with EU

SUI’s RSI Declines: Bearish Signals Suggest More Downside Ahead

$22M Crypto Scam Takes $21.6M from 40,000 Investors

XRP Active Addresses Soar—Is a Market Shift on the Horizon?

Bitcoin’s Capital Inflows Surge: Investors’ Demand Grows Strong

Share This Article
Facebook Twitter Email Print
Previous Article Connections Between Bitcoin, Time, and Saturn’s Synchronicity
Next Article “The Bitcoin Report: Your Monthly Digest from Bitcoin Magazine Pro”
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow
- Advertisement -
Ad image

Latest News

4 Cryptos to Challenge Solana: Potential Growth for Investors
Defi
Bitcoin ETF Inflows Exceed $3B, Demand Reaches 6-Month Peak
ETFs
Japan’s Push for Bitcoin and Ethereum ETFs Gains Momentum
Institutions
Ripple Appeals Court Ruling on XRP’s Institutional Sales
Meme
//

We influence millions of users and is the number one Crypto and Web3 news network on the planet

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
nl Dutchen Englishfr Frenchde Germanel Greekit Italianpt Portugueseru Russianes Spanish
en en
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?