Bloomberg senior ETF analyst Eric Balchunas said markets are underestimating the strength of Bitcoin’s bull market over the past two years, even as older investors continue allocating capital to spot Bitcoin exchange-traded funds.In a post on X, Balchunas said so-called “baby boomer” investors purchased roughly $5 billion worth of Bitcoin ETFs in a single day. Despite that activity, he noted that net inflows into Bitcoin ETFs remain slightly negative year-to-date, describing the current period as a difficult phase for flows.Balchunas argued that investor sentiment has failed to fully adjust to the scale of Bitcoin’s recent performance. He said that if markets had been told three years ago that Bitcoin would trade near $78,000 and that spot Bitcoin ETFs would accumulate around $100 billion in assets under management, the outcome would have been widely viewed as a major success.Such an outcome would imply a roughly 240% price increase over the period, equivalent to an annualized return of about 50%, according to his assessment.Instead, Balchunas said the market is still discounting the magnitude of Bitcoin’s rally in 2023 and 2024, during which the asset posted cumulative gains of approximately 464%. As a result, he suggested the prevailing narrative around Bitcoin and ETFs has yet to fully reflect the scale of those gains, even as institutional and retail participation continues to broaden.
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