While Bitcoin Exchange Trade Funds (ETFs) have seen billions of leaks in recent weeks, Eric Baltunas, a senior ETF analyst at Bloomberg, says investors, particularly Boomers, have proven to be stronger holders than many expected.
Speaking with Scott Mercer about Crypto’s roundtable, Bulknath breaks the numbers behind Bitcoin ETF flows, explaining that most investors are holding it firmly despite the sudden drop in prices.
“ETFs collectively took in cumulative flows of $40 billion,” he said. “It’s now at $35 billion, so we’ve had a $5 billion outflow. But even if you average your assets, it’s 5% of your assets. We’ll turn that over – 95% of your assets are stuck.”
He noted that some of these outflows are driven by hedge fund rewind-based transactions rather than traditional long-term investors withdrawing. “If you’re talking about a rear boomer, such ordinary people, you might be seeing 97-98% hanging out there,” Balknath said.
According to data from Farside, Bitcoin ETF is looking at $35.4 billion in total net inflow despite the sustained outflow from Grayscale’s GBTC, which lost $22.5 billion. BlackRock’s IBIT leads with an inflow of $39.2 billion, while Fidelity’s FBTC continues at $11.3 billion.
“In 2001, during the Financial Bubble.com crisis, only a quarter of the money came out of the Spy ETF. Even then, 75% were stuck,” he explained. “So, look at these other sell-offs and measure what a good core is. You’re a 95% boomer, definitely 97% boomer. It’s pretty solid.”
Balchunas also discussed the price movement of Bitcoin regarding ETF flows and macroeconomic factors.
He noted that when BlackRock applied for the Bitcoin ETF, Bitcoin had traded about $30,000. It then surged to $70,000. This is a move that he mainly suffers from the launch of the ETF. From there, the price rose to $100,000. He believes he fueled his excitement over Donald Trump’s pro-cryptostance.
“When the ETF was submitted by BlackRock, Bitcoin was $30,000. In my opinion, it went up to $70,000. This is mainly about ETFS that escaped trouble. And there was a hype ranging from $70,000 to $100,000,” added Balchunas.
Now that Bitcoin has traced some of these profits, Bulknath suggests that $70,000 could serve as a strong price range. “The 70-100 moves are mostly on Trump, then you throw the stock market in and everyone gets in a bad mood. Isn’t it bad to be at $85,000?” he added.