Source: Wall Street News
According to some analysts, Bitcoin's latest price trend shows that for products that are highly anticipated by the market, Bitcoin ETFs have not left a deep impression so far.
After the Bitcoin spot ETF was approved, it doesn't seem to have reached the desired level of popularity.
Bitcoin spot ETFs, which include BlackRock, Franklin Templeton, and Invesco, had a net inflow of $881 million in the first three days of trading, according to data from digital asset management firm CoinShares. Among them, BlackRock topped the list with an inflow of $723 million, and Fidelity followed with an inflow of $545 million, but asset management company Grayscale's Bitcoin ETF had an outflow of $1.18 billion.
Analysts pointed out that after approval, Grayscale directly converted its previous $28 billion Bitcoin trust into a Bitcoin ETF, but the transaction fees it charged were more than a percentage point higher than that of competitors, causing some investors to switch capital from Grayscale to other companies' Bitcoin ETFs. Excluding Grayscale's capital outflow, the 10 newly issued Bitcoin ETFs attracted slightly more than $2 billion.
However, since the Bitcoin ETF was approved, Bitcoin has declined by around 6%. Zach Pandl, managing director of Grayscale's research division, analyzed: “After a sharp rise in valuation, it is natural for investors to choose a profitable settlement.”
The media quoted Ilan Solot, co-head of digital assets at Marex Solutions, as saying that the approval of the Bitcoin ETF was definitely not a large-scale success. Bitcoin's latest price trend shows that for products that are highly anticipated by the market, Bitcoin ETFs have not left a deep impression so far.
The overall performance of these Bitcoin spot ETFs was less than that of the Bitcoin futures ETF launched by ProShares in October 2021, which attracted $1 billion in the first two days.
Meanwhile, some brokers declined to offer new Bitcoin ETF deals. Pioneer Group, the world's second-largest asset management company, said the new products “didn't match the balanced, long-term investment portfolio they offered.”
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