Minimal New Capital Inflow for Bitcoin Spot ETF
CryptoNewsTerminal Staff08 Sep, 2024
Minimal New Capital Inflow for Bitcoin Spot ETF
Existing Holders Drive Bitcoin Spot ETF Inflows According to ETF expert Jim Bianco, the majority of inflows into the bitcoin spot ETF originate from existing holders transferring funds from traditional finance (TradFi) accounts. Despite retail investors' continued participation, the influx of new capital remains limited. Retail Investors and Exit Strategies While retail investors actively buy into the ETF, those who experienced losses are gradually exiting the market. Bianco emphasizes the need for patience, noting that the next halving in 2028, when on-chain tools mature, will attract substantial investment. Asset Under Management Decline Total assets under management (AUM) for all BTC spot ETPs have decreased to $46 billion, its lowest level since February 2023. The AUM reached a high of $62 billion in June 2023, indicating a market correction.
