Eric Balchunas is a Senior ETF Analyst at Bloomberg. We discuss:
- The Bitcoin ETF launch compared to other asset class ETF launches
- Bitcoin ETF performance breaking records
- When will Vanguard capitulate and offer the Bitcoin ETFs on their platform
- The 80/20 and 60/40 investing strategy with a Bitcoin ETF and changing demographics
- Banks want to custody the Bitcoin ETFs but SEC SAB 121 is a blocker
- Will other ETF issuers follow Bitwise’s move of wallet address transparency
- Hong Kong issuing a Bitcoin Spot ETF
- Will the Ethereum Spot ETF be approved this year?
Key Takeaways:
- Bitcoin ETFs have seen record-breaking success, surpassing previous launches in terms of volume, assets, and flows within the first seven weeks.
- GLD was technically tied with Bitcoin ETFs in terms of performance when adjusting for certain factors, but overall, Bitcoin ETFs have outperformed all other new launches.
- Volume in ETFs often predicts future flows and assets, as seen in the spike in Bond ETF volume in 2008 leading to increased assets in the following years.
- Institutions are likely to prefer trading Bitcoin ETFs over the underlying currency in times of market volatility or illiquidity, similar to the trend seen with Bond ETFs in 2008.
- The success of Bitcoin ETFs may pave the way for other cryptocurrencies like Ether to follow, but they may struggle to match the initial impact of Bitcoin.
