Bloomberg ETF analyst Eric Balchunas said that the US Bitcoin spot ETF saw its first single-day net inflow in history last Friday. This also indicates that more than 95% of ETF investors, especially the baby boomer generation, continue to hold during periods of market turmoil and prolonged downturns.
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Baby boomers are more likely to HODL
GBTC bids farewell to 78 days of net outflows, sees net inflow for the first time
Balchunas said that both capital outflows and inflows are normal occurrences. However, over time, ETFs tend to have two things in common: net growth and relatively strong holders (strong hands). Ironically, this also shows that the baby boomer generation, who are the main buyers of ETFs, are better at HODLing than people in the cryptocurrency world.
Because ETF investors typically do not engage in short-term trading, they are not degens. ETF investors understand that volatility is common and can bring long-term benefits. And when they only invest 1-5%, the short-term economic downturn has a smaller impact on their overall investment portfolio.
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Note: Degen is short for degenerate, which means “DeFi gambler” or “veteran”. It is often used to describe those who invest funds without considering the security audits of DeFi protocols, enter early, and exit before the heat subsides and the bubble bursts, extracting liquidity and selling tokens to newcomers. It is similar to the concept of bubble speculators.
Grayscale GBTC also finally bid farewell to 78 consecutive days of net outflows and saw a net inflow of $63 million.
Balchunas called this chart Hall of Fame-level for ETFs (HoF, Hall of Fame). He has never seen a similar product before and it may never happen again.
Balchunas said that on Monday, GBTC appeared to have more capital inflows, and Grayscale indeed has a large marketing budget.
According to SoSo Value data, as of 5/3, Grayscale GBTC has accumulated $17.4 billion in net outflows, and its current net asset value is $18.1 billion, equivalent to almost half of the funds being withdrawn.
Eric Balchunas
GBTC
Bitcoin spot ETF
Further reading
Institutional investors have not flocked to Bitcoin, 13F reports reveal only 30 funds bought IBIT
Bloomberg analyst comments on ARKB fund outflows: It’s just a daily occurrence that will eventually happen.