Bitcoin Spot ETFs Break Records, Revealing High Demand
Record-breaking volumes and flows in Bitcoin spot ETFs unmistakably signal an overwhelming demand for these recently approved investment vehicles.
Analyst perspectives vary on the source of this demand, with CoinShares’ Head of Research, James Butterfill, suggesting that the RIA (Registered Investment Advisor) market, especially with Carsen Group greenlighting ETFs, indicates a predominantly institutional influx in the U.S. Meanwhile, Bitwise CIO Matt Hougan believes the demand spans various investor types, including a substantial retail component.
He notes that major institutions don’t immediately activate new ETFs, such as those from Bitwise and BlackRock, upon launch, potentially driving demand from retail investors, independent advisors, and hedge funds. With Bitcoin ETFs posting remarkable daily volumes exceeding $7.7 billion and net flows hitting a new high of over $673 million, pressure is mounting for major wirehouses like Morgan Stanley and Merrill Lynch to onboard these ETFs, despite some firms, including Vanguard, still blocking access. The surge in Bitcoin ETF trades has sparked comparisons to the GameStop frenzy, but analysts highlight key distinctions, emphasizing the ETF retail nature over GameStop’s retail-driven phenomenon.
Clever Robot News Desk 2nd March 2024
Related Article
