Unchained

How, in 7 Weeks, Bitcoin ETFs Reached Inflows That Took Gold ETFs 3 Years - Ep. 616

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In this episode, Eric Balchunas, senior ETF Analyst at Bloomberg Intelligence, discussed the performance of Bitcoin ETFs since their launch two months ago. 

Balchunas noted that the ETFs' performance exceeded his expectations, with a faster and more intense "second wind" than anticipated. He attributed this to a combination of asset managers buying in, retail interest, and the "ETF effect" where the knowledge of incoming flows encourages non-ETF investors to buy. 

Balchunas also predicted that BlackRock's Bitcoin ETF would likely be the most successful of the nine new spot Bitcoin ETFs, while also doubting that any of the smaller issuers would bow out. 

He also discussed the potential for spot Ether ETFs, but was less optimistic about their success compared to Bitcoin ETFs.

Learn more: Bitcoin ETFs Explained: What Are They & How Do They Work?

Show highlights:

  • Why the Bitcoin ETF performance in the past couple of weeks exceeded Eric's expectations
  • Whether Eric had ever seen the kind of hype around Bitcoin ETFs occur with other ETFs
  • How there has been a lot of retail interest in these past few weeks
  • Eric's insights into how bitcoin reached all-time highs again this week
  • Whether a good portion of the ETF volumes is sustainable and what's driving those large volumes
  • Whether it's safe to say that BlackRock is the winner among issuers
  • Whether the smaller issuers in terms of volume and AUM will close their ETFs
  • When options on Bitcoin ETFs will be approved
  • Whether in-kind redemptions will be allowed in the near future and the role of politics in that
  • Whether Grayscale will have to reduce its fees considering the huge outflows from GBTC
  • Why Eric believes that spot ether ETFs won't have as much demand as the bitcoin ETFs did
  • Reasons the SEC could use to reject spot ether ETFs
  • Whether issuers will rebalance their portfolios at the end of quarters
  • What Eric expects to see in terms of inflows by year’s end 
    • Thank you to our sponsors!
    • iTrustCapital
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      • Guest
      • Eric Balchunas, Senior ETF analyst at Bloomberg Intelligence
      • Previous appearances on Unchained:
      • Why Spot Bitcoin ETFs Are Likely to Finally Start Trading on Thursday
      • Will a Spot Bitcoin ETF Finally Get Approved?
        • Links

        Recent coverage on Unchained of Bitcoin’s surge: 

        • How the Bitcoins in Your ETF Get Sourced: The Real Story
        • Should You Sell Bitcoin Now That It’s Nearing Its All-Time High?
        • Miners Appear to Sell $69 Million Worth of Decade-Old Bitcoin
        • Bitcoin Hits New All-Time High Above $69,000, Presaging More Potential Gains

          • Previous coverage on the Unchained podcast of spot Bitcoin ETFs:

          • Bitcoin’s Price Is Way Up. And $48 Trillion in Wealth Just Got Access
          • Why Some Brokerage Firms Are Blocking Access to Spot Bitcoin ETFs
          • Why the SEC May Want Cash Creation of Spot Bitcoin ETFs
          • Why It Looks Like BlackRock Could Win America’s First Spot Bitcoin ETF
          • The 4 Factors That Will Determine Which Spot Bitcoin ETFs Win Market Share
          • How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection
          • Eric’s tweet on $IBIT smashing $788m 

            • Ethereum spot ETF:

            • BitMEX Blog: Ethereum ETFs & Staking
            • Eric’s tweet on ether ETFs 
            • Unchained: 
            • Why Spot Ether ETFs Likely Won’t Steal Bitcoin’s Thunder — Even if Staking Is Included
            • Spot Ether ETFs Could Introduce New Concentration Risk in Ethereum: S&P Global

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              UnchainedBy Laura Shin
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