Spot Bitcoin ETFs are now a popular option. major headliner Recently, due to increased levels of inflows into the market. According to data from SoSoValueOver the past three week period, ETFs have pulled in over $5 billion dollars of investment coinciding with a Bitcoin price increase that is over 23 percent. Jim Bianco of macro investment research says, however, that these Spot-ETFs did not contribute to any significant growth on the Bitcoin Market.
Spot Bitcoin Exchange Traded Funds (ETFs) Bring in No New Money but Recycled Investments
The aforementioned is a series of X posts Bianco said on November 2, that the Spot Bitcoin Exchange Traded Funds do not draw any new investment to the underlying assets despite impressive inflow records. First, the analyst praises their performance. some of which rank as the best-performing ETFs of 2024 Following their launch in January,
Bianco points out that BTC is still below its previous all-time value of 73.750, set 8 months ago, despite Spot Bitcoin ETFs receiving over $12 billion since BTC in the same time period.
Analysts explained that the cryptocurrency should not be less than 4% below its ATH but rather, it would have been higher than $100,000, especially when considering the other positive factors such as the Fed rate cut, the halving and the public endorsement of Republican presidential candidate Donald Trump.
Bianco provides some context by referencing the Gold ETFs, which have seen over $6 billion of inflows in the past six months. This has resulted in a 25 percent increase in gold’s price. This price rise, according to the market analyst can be attributed by some to the “new money” Gold ETFs have seen a significant increase in their investments. Spot Bitcoin ETFs are largely funded by recycled funds from on-chain exchanges and wallets.
Jim Bianco backs up this theory using a report by Coinbase’s CFO Alesia Haas, which showed a drop in retail bitcoin traders at the exchange during the past several months. Furthermore, he also points to the average Spot BTC ETF trade of $16,000 compared to the average gold ETF trade of $72,000 which is consistent with investments from wealth managers and institutions.
Jim Bianco concludes that the Spot Bitcoin Exchange Traded Funds (ETFs) aren’t attracting investors. “new money” It is not redistributing existing Bitcoins, but simply circulating them. This trend, he says in a disturbing way could grant the traditional financial institution (TradFi), more control over the crypto-market.
Bloomberg Analyst Fires Back At BTC ETF Criticism
Eric Balchunas is a well-known Bloomberg ETF Analyst. issued Bianco’s description of the Spot Bitcoin Exchange Traded Funds as “merely” is firmly rebutted. “mental gymnastics”. Balchunas praised the performance of these ETFs, which he believes played a key role in driving Bitcoin from $35,000.00 in January up to its current market price of nearly $70,000. Bloomberg analyst calls the Spot Bitcoin Exchange Traded Funds “amazing”. “powerful” They are recommended against gambling against due to the low price, high liquidity of their products, and the association they have with well-known brands.
BTC. BTC continues to trade for $68,100, reflecting a 2.5% drop in the last 24 hours.
Chart from Tradingview, image from Blockzeit
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
