Bitcoin (BTC) is providing ample material for memes this week, and it’s not just because of the “4/20” halving date. The success of spot Bitcoin exchange-traded funds (ETFs) has market observers celebrating a halving that seems “almost too perfect.”
While BTC price action remains largely sideways during this halving, its timing has led some to believe that it was meant to be. Eric Balchunas, a dedicated ETF analyst at Bloomberg Intelligence, pointed out an interesting coincidence on the halving day. Not only did the significant event occur on April 20, a key meme date in itself, but the largest United States spot Bitcoin ETF saw 69 consecutive days of inflows.
“It’s a little too perfect,” Balchunas summarized.
Although Bitcoin ETFs have experienced a slowdown in inflows since reaching their peak in March, BlackRock’s iShares Bitcoin Trust (IBIT), the largest ETF in terms of assets under management, has not seen a single day of outflows. Recent data from Farside, a UK-based investment firm, indicates that momentum is tentatively returning towards the end of last week. On April 19, IBIT attracted just under $30 million, while Fidelity Investments’ second-largest ETF managed nearly $55 million. Outflows from the Grayscale Bitcoin Trust (GBTC) were modest at $45.8 million.
Concerns have arisen from recent Form 13F filings, suggesting that Bitcoin ETFs have not yet gained significant traction among the mainstream majority. Jim Bianco, the creator of macro research firm Bianco Research, described the first-quarter allocation data as a “disappointment.” He added that unrealized gains are shrinking rapidly compared to the current BTC price action.
In response, Balchunas suggested that asset managers view these products like “hot sauce.” He noted that IBIT currently has around 60 reported holders, accounting for only a small 0.4% of total shares outstanding.
It’s important to note that this article does not offer investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.