Data shows that in the past four years, BlackRock IBIT has the largest inflow of funds among the 1,800 ETFs that have started trading. James Seyffart, an ETF analyst at Bloomberg, believes that the reason for the rapid inflow of funds is partly because investors have wanted to invest in Bitcoin for some time, but before the ETF was approved, they had no safe or simple way to invest. Now that the ETF has started trading, this demand is entering the market rapidly.
He said: "I think this is partly suppressed demand, but it is also new demand as people learn more and more. Traditional financial institutions are also interested in these products-including hedge funds involved in futures trading. This helps improve flow and demand." He added that hedge funds have been long ETFs and then sell futures contracts.
Meanwhile, the performance of Ethereum spot ETFs has been unsatisfactory. Farside data shows that so far, 9 ETFs have accumulated a net outflow of US$491.9 million. However, this does not mean that demand will not pick up. Investors have put cash into other products, which may mean that a turnaround is coming.
Seyffart added, “It’s just that Grayscale ETHE outflows are overwhelming the inflows of other (Ethereum) ETFs, for now.” (Decrypt)