Bitcoin ETFs Are Green Again—Here’s Why Investors Should Zoom Out
Bitcoin ETFs Are Green Again—Here’s Why Investors Should Zoom Out
Balchunas sees a "spiritual parallel" with IBIT: BlackRock's Bitcoin ETF briefly crossed $100 billion in assets last October, coinciding almost exactly with Bitcoin's all-time high above $126,000. Then the slide started. Bitcoin has since lost roughly half of its value, currently trading near $64,000.
But for long-term hodlers, a 50% crash isn't really that bad of a crypto winter—at least not historically.
"Bitcoin ETFs may be following the same script: spectacular gains, painful drawdowns and recoveries that may test investors' patience," Balchunas wrote.
BlackRock's IBIT has sold close to 100,000 BTC in recent months to meet redemptions, leaving it with just over 733,000 BTC under management. The cautious optimism from Balchunas: Every gold ETF cycle means the asset moons after a crash. "Two steps forward, one step back," he wrote—while flagging that the process can test patience for far longer than most investors expect.
Citigroup made the opposite bet on July 1. The bank cut its 12-month Bitcoin price target from $112,000 to $82,000 and reset its projected ETF inflows for the next year to zero—down from an earlier estimate of $10 billion—citing negative flows, stalled U.S. crypto legislation, and weakening institutional appetite.
The combined $77.7 billion in total net assets across all 13 spot Bitcoin ETFs is down from over $106 billion recorded just before the outflow streak began in mid-May.
This article has been published in decrypt.co via Yahoo News.
Bitcoin ETFs Are Green Again—Here’s Why Investors Should Zoom Out
Two consecutive weeks of inflows ended the worst sustained outflow streak in Bitcoin ETF history. Here's why patience may be required from investors.
finance.yahoo.com
