According to Cointelegraph, Bitcoin exchange-traded funds (ETFs) that launched in the United States earlier this year will need more time before they become a significant instrument of adoption, says former Wall Street analyst Jim Bianco. Bianco, the CEO of Bianco Research, expressed in a Sept. 8 post that spot Bitcoin (BTC) ETFs have not lived up to the pre-approval hype since their launch in January. He pointed to recent outflows, holders losing on their positions, and a lack of major institutional investment as indicators that the Bitcoin ETF market might need more time to mature.
Bianco highlighted that there has been over $1 billion in net outflows from the 11 US Bitcoin ETFs in the last eight trading days, according to Farside Investors data. The spot Bitcoin ETF market now holds around $48 billion in assets under management, down from its peak of $61 billion in March. He noted that very little new money has entered the crypto space, with most ETF inflows coming from onchain holders moving back to traditional finance accounts. BlackRock’s chief investment officer of ETF and Index Investments, Samara Cohen, mentioned in June that about 80% of Bitcoin ETF purchases have likely been self-directed online accounts.
Bianco speculates that the next Bitcoin halving in 2028 and significant development of onchain tools will likely be needed before the market truly hits its stride. He emphasized the need for patience and further development breakthroughs. However, not all analysts agree with Bianco’s assessment. Bloomberg senior ETF analyst Eric Balchunas noted in a Sept. 8 post that the Bitcoin ETFs had billions of assets under management after eight months. He questioned what word should be used to describe an ETF with $7 million in assets if $20 billion is considered a failure.
Among the top four Bitcoin ETFs in the US, BlackRock’s iShares Bitcoin Trust (IBIT) leads with over $20 billion in inflows to date. Fidelity Wise Origin Bitcoin Fund (FBTC) has nearly $10 billion, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB) each have roughly $2 billion in net inflows to date. Another crypto analyst, Bryan Ross, also disagreed with Bianco, arguing that if most ETF trades are not institutional, it means institutions aren’t even here yet, and massive institutional inflows could occur next time FOMO and greed show up.
XingChi
